andreweverett360 Book Review, Finance

Quality of Earnings


Quality of Earnings: The Investor’s Guide to How Much Money a Company is Really Making
by Thornton L. O’Glove

Thornton “Ted” O’Glove published the Quality of Earnings Report from 1969 through the 1980s, identifying red flags in financial statements for institutional investors. He wrote this book in 1987 to share his due diligence methods with individual investors.

“Often the stock can go north while the quality of earnings goes south, and vice versa.”

For example, the author provides examples of how reported net earnings growth can mask a decline in operating income — or even an operating loss.

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andreweverett360 Book Review, Finance

Cash Flow Surge: 101 No-Cost and Low-Cost Fast-Action Strategies to Boost Your Cash Flow


Cash Flow Surge: 101 No-Cost and Low-Cost Fast-Action Strategies to Boost Your Business Cash Flow
by Alastair Thomson (interview)

In college I took a course called Small Business Finance. The main thing I remember from this course is the emphasis on “cash flow, cash flow, cash flow.” Alastair Thomson is an accountant who has been a CFO and CEO of several businesses in the U.K., across variety of industries. He wrote this book for owners of small and medium-size businesses. While cash flow and profit are not the same thing, many of the ideas in the book can improve both.

The 101 chapters cover suppliers and expenses, customers and revenue, staffing and procedures, communication, insurance, logistics, contracts, and technology. Here are some snippets:

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