The hottest Financial Reporting Substack posts right now

A good business valuation combines numbers with a compelling story. The story helps make sense of the numbers and gives them context.
Storytelling is important for investors because it makes a business memorable and helps communicate its potential. However, numbers are crucial to maintain credibility and accountability.
As market conditions change, so must a business's story. Companies like Facebook need to adapt their narratives to remain relevant and regain investor trust.

Nursing homes engage in profit "tunneling" through inflated transactions with related entities, concealing actual financial status.
Accurate financial reporting is crucial in sectors like healthcare for effective public policies, but inflated costs complicate matters, affecting reimbursement rates and regulations.
Strict oversight and extending liability to related parties are needed to address the issue of profit tunneling, enhancing transparency and accountability in the nursing home industry.

More disclosure doesn't always help investors understand companies better. In fact, long and complicated reports can make it harder to find important information.
Corporate filings like the 10-K and S-1 have gotten longer and more complex over the years. This means that reading them has become more confusing and less helpful for investors.
There should be a balance in disclosures. Regulators need to consider what information truly benefits investors, not just add more rules that lead to information overload.

Uber is more than just a ride-sharing service; it sees itself as a personal mobility business, aiming to tap into a huge market worth potentially $2 trillion.
Despite growing rider numbers and revenues, Uber struggles with profitability, continuously facing high costs and losses, making its financial future uncertain.
Uber's ability to convince riders to use its services more often, rather than just acquiring new users, will be key to its success and overall company value.

Warren Buffett and major investors can make mistakes just like anyone else. Investors shouldn't blindly trust their idols without thinking critically about their decisions.
Stocks are not like bonds; companies aren't required to pay dividends. If a stock's yield seems too good to be true, it might not be sustainable.
Brands can lose their appeal over time. Even famous names can struggle to remain relevant as tastes change and the market evolves.

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Goodwill shows up on a company's balance sheet usually after an acquisition. It's the difference between what a company pays for another company and the book value of that company's assets.
Goodwill is there to make the balance sheet balance, reflecting the difference between historical asset value and current market value, as well as the potential for future growth.
When valuing a company, goodwill can complicate things. It can affect earnings and book value, but in reality, it shouldn’t change how you view the underlying assets or the company itself.

Market moves can be unpredictable and often relate to expectations rather than absolute news. For instance, a good earnings report can be seen as bad if it doesn't meet high expectations.
Many factors can influence the market on a given day, making it tough to identify the exact cause of movements. It could be anything from economic data to global events.
Experts providing explanations after market shifts helps us feel more in control, even if the reasons are not always clear. These insights can give us perspective and help us move forward.

Founders should send monthly updates to their investors. This keeps everyone informed about the company's real status and progress.
In updates, focus on important numbers and data that affect the company's success. Personal stories or events that don't lead to growth aren't needed.
Ask your investors for help when you need it. They have valuable connections and can assist in solving problems you face.

Sarah Gelfand emphasizes the importance of credible communication in impact investing.
Early contributions to contemporary impact investing movement date back to 2007.
Importance of standardized metrics like IRIS for measuring impact in the industry.

Coinbase is expected to report around $2 billion in revenue for Q4 2024, thanks to a strong increase in trading and subscription revenues. This is a significant growth compared to previous quarters.
The trading volume on Coinbase hit about $430 billion, which is the highest in over two years. This surge is likely due to positive market conditions following the U.S. election.
Coinbase's Layer-2 platform, Base, has shown strong profitability, generating over $26 million in profit while maintaining high margins despite rising costs. This highlights the success of its new business model.