Ten hard questions to ask or be asked
| 1 | Can you take the figures at face value, or do you need to adjust for national GAAP, accounting policies, etc.? |
| 2 | How do the latest financials stack up? |
| 3 | What do the trends over time show? |
| 4 | Do the indicators of liquidity suggest that there is adequate cash flow? |
| 5 | What do the indicators of efficiency tell you? Is the business well managed? |
| 6 | Do you need to adjust for inflation? Is the company operating in an area with high inflation? |
| 7 | If the accounts have been adjusted for inflation, has the correct deflator been used? |
| 8 | How did the company perform relative to competitors? The industry as a whole? The entire market? |
| 9 | When comparing companies, are you comparing like with like? |
| 10 | What are the effects of variables ... |
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