Customer Reviews

Financial Warnings: Detecting Earning Surprises, Avoiding Business Troubles, Implementing Corrective Strategies

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The funny thing is that I have read over 20 books on financial analysis and investing, and I believe that every penny that I have spent on this book was well worth it. The price of the book scared me at first, but where all of the other books that I read fell short, Financial Warnings did not. I was very impressed with the detail to which the book describes each investment scenario. There is no shortage of financial warnings to look out for. In fact, I was shocked to learn of how many warnings lenders and investors should be aware of. Not only has this book taught me about what to avoid, but also about what to buy. Did you know that the CEO or CFO going through a divorce is a financial warning? Did you know that a company entering a new business is a financial warning? Did you know that beating earnings expectations by one penny every quarter is a financial warning when your competitor fell short of expectations? This is a must read. Reading Financial Warnings has changed my life. It is a must read.

I have read many books dealing with forecasting financial problems. This rates with the best. I found it especially useful to incorporate the authors'suggestions into a financial spreadsheet which highlights with color to indicate when the stated numerical criteria has been reached. The only shortcoming may be that there is no comment on Z-Scores or similar indicators.

As a Georgia Tech Finance MBA, I have taken 3 courses from Dr. Mulford and 2 from Dr. Comiskey. Why so many? They are both outstanding teachers and dedicated professionals who infect their students with a passion for the critical and skeptical study of financial reports. The book Financial Warnings forms the backbone of a course in which we learn to produce a firm's Sustainable Earnings Base (SEB). From there it is easier to value the firm and to predict future earnings surprises. The book takes a very practical, methodical approach, and is based upon real-world financial research and surveys of lenders. Earnings management, fraud, undervalued liabilities and overstated assets are some of the interesting topics covered. Complex issues are explained thoroughly, in a very smooth writing style. Well Done!

i think this is an excellent book which explains well how a person can dissect financial statements and attempt to uncover misreporting. i would like to know if there are other books such as this. i've also read Quality of Earnings, written over 10 years ago... if you have any suggestions please write (thanks).

The book is an excellent treatise which provides the readers a systematic framework for figuring out whether the books have been manipulated or if the accounting has been aggressive, through finding out non-recurring items in the income statement and balance sheet. I have tried other books but, they just do not compare with this treatise. The book uses a systematic step-by-step approach which introduces the reader to how to read the fine print. This book should be invaluable to finance and accounting professionals, and also to amateur investors, who would be willing to do a little research into the company books.

For those who not lucky enough to attend Dr. Mulford's class, this book should do a great job.

This book provides a detailed description of what to look for when analyzing the financial earnings of a firm. I found it extremely informative and easy to read, especially since I am not a guru in accounting. The sequence of chapters provides a step-by-step method to determining if a firm will issue a negative earnings surprise prior to it actually occurring. The logic behind this is based on surveys with banks as well as personal insights from both authors. Ultimately, a sustainable earnings calculation is performed which allows you to evaluate a firm on a level playing field.

Although this book looks outdated but I am sure it sounds loud and clear especially when we are so hot-headed about the Internet Age and Knowledge Management and in most cases have forgotten about what are the Warning Signs we have to watch for particularly when we are opting to invest in a new stock of the new age.The Author is a respected scholar in the field of Finance and I admire every book of his and has spent the money to have every book he has written but most of all, I feel this book is the best. Read it and you will have things to remember everyday.

To all the people who are skeptical. This book is excellent. I got an email pointing me to this direction and I am glad I did spend the money. It is money well spend.

It teachs you the non recuring items in the financial statements, capitalized assets, capitalized interest, Lifo liquidation etc.

If you find my review satisfying, let me know if you had another good book to read. I know another book, let's trade some info.

Impeccable, a must read for investors, bankers, corporate finance pros. Highly recommended.