📉 Profit Quality Checklist – Don't Fall for Fake Earnings
Not all profits are created equal. Use this to filter strong vs. shady companies: 👇
↣ Net profit growing, but CFO not = 🚨 accounting gimmicks
↣ CFO > Net Profit for 3+ yrs = strong earnings quality
↣ Avoid companies with sudden other income spikes
↣ High depreciation or interest reversals? Dig deeper
↣ EPS up, but PAT flat = check for dilution or buybacks
↣ Frequent one-time gains = unsustainable earnings
↣ Compare PAT with Free Cash Flow – huge gaps = red flag
Clean profits = consistent compounding.
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🔁 Repost to protect others from accounting traps
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The problem for the rest of the world in White ball cricket is that India have another team that could play and they are equally as good … the Aussies to push them so close was a great effort with so many missing … It’s India’s trophy for me … #ChampionsTrophy2025