Ten signs a company's in trouble - MoneyWeek Investment Tutorials 

1. Goodwill 2. Current Ratio 3. Gearing 4. Off Balance Sheet 5. Plunging Cash Flow 6. Adjusted EBITDA 7. Key Management Changes 8. Directors Dumping Shares 9. One Customer 10. Rapid Expansion

I cant still believe this information is free! Awesome videos

I would think that the Cash Flow Statement (CFS) is the most important financial statement to analyse because it shows activities across the whole financial year whereas the Balance Sheet is a snapshot of just one day. I agree that profit and loss statements are not as important as the other two but I do think the CFS should be the first statement one looks at. In this particular example (based solely on this video), if you look at the INVESTING ACTIVITIES in the CFS, you will discover the various acquisitions made and how it was financed - Cash Flow from Operations (CFO) or Cash Flow from Financing (CFF). Since you said the acquisitions were made with cheap money, we would see an increase in CFF therefore an increase in gearing (the leverage would be determined by examining the balance sheet) and interest payments. Under CFO, we would be able to see the changes in working capital which lead to a current ratio of 0.5. Moreover, you can compare the CFO with Sales for a better measure. Thoughts?

PLEASE share MORE RED SIGNS/SIGNALS of a comp drowning? Thanks Tim!

thanks for sharing the knowledge . you make it look so simple. i am big fan of your videos !

This guy either is from devon and/or is matt bellamy's father... I'm convinced :)

Your videos are great thank you so much for providing us this info

This is enormous gift to just be given at cost of few KBs of data.. thank you Ben for your generosity!!

This is a great video. Before watching this video I always thought that the cash flow statement was the most important financial report but now I see why the balance sheet has more valuable information. It is important to calculate the current ratio to find out if a business can pay off its current liabilities immediately and the debt to equity ratio to find out if it is over leveraged.

love this guy! Especially his wit and ability to try break a complexity to layman terms - a genius. Who is he ?

Thank you Tim, brilliant explanations

Excellent video. Congratulations.

Excellent - still today in 2019

How is no one else not saying this guy is 100% Christian Bale playing British Michael Burry.

Every accounting and finance student should watch this video.

Thanks for this

Great video Mr. Bennett however, I would've loved it if you used these numbers to predict a future bankruptcy of sorts instead saying that you knew this all along with Southern Cross.

Number 7: Uber nowadays. Be aware.

Adjusted EBITDA is similar to the nonsense community EBITDA that Wework was espousing

These are the best, thank you so much

good intel. need to apply it to late 2020 companies.

"By the time you get to note 34 most people have lost the will to live." Lol

Wework? Except Wework couldn't go public .

"read accounts backwards" a good lesson on it's own.

Or the D/E combined with the artificially high value of equity due to the over inflated intangible asset. That's a 'robbing Peter to pay Paul' scenario.

14:47 So true!!

I've noticed the same about EBITDA, because, I give a damn shit about depreciation and amortization, I want earnings, no matter what. And they love to show EBITDA, why would they?

He flips us off at 3:52 :(

Good video

Hi Tim, your videos are awesome. Just wondering, are there any books in the market for stock investing that you would recommend? I would like to get a comprehensive guide. Of course if you think you can do a series of comprehensive videos on how to chose and value stocks that would be a lot better! Keep up the good job!

Thank you very much for this and other videos! ?? Where is it possible to find those souhern cross data??

The "one customer" thing, big problem.

Hello, absolutely LOVE your videos, thankyou so much for sharing them. I see your number 1 red flag is goodwill, I wonder what would be considered an acceptable good will amount. I.e. 10% shareholder equity, 20% etc... Obviously in this vide you say 2x shareholder equity is bad so where is the line roughly? Thankyou! :)

Thank you Money Week Bennett please would you help understand why a company can have straight (signifigant) book losses when it was set up to be a healthy business by the time it is transferred to Government in about 7 years...... I'm very intrigue of your 10 points etc Appreciate your time and help Thank you

I love this guy 👍 intelligence and humor

So is Gearing a debt to shareholder equity ratio?

:-) ... THIS GENTLEMAN's SARCASTIC UPPER-CUT (punch like) humor - swiftly SMACKS Jeremy Clarkson's humor out of the water/park.

As American, I am not familiar with the balance sheet term 'good will'. Does it translate from GB to USA in any way? Is it like tax credits?

Hi, how should the “listing market” ,, maybe London stock exchange has reacted to these signs ? What should they have done ?

This is an interesting video. I am using accounting ratios to analyse some current companies at the moment. A lot seem to have current ratios of slightly below 1:1 and gearing of around 70-75%. GSK and Coca Cola are two that I have looked at recently that fall into this category.

Good stuff but basic accounting stuff.

Thank you so much Mr.Tim.I can't believe that you give us all this information on the house

An excellent video. Thank you for this.

He is able to go deep into the material while keeping cyou engaged. The perfect blend of style and substance.

Great Vid. Wished I had watched it before buying Aurora.

Brilliant, awesome. Can not stop watching. Thank you so much.

Excellent content, clear as cristal. Thanks

rimless glasses was a fashion, clean open face look ... how times have changed

What then is the optimal level of debt-to-equity ratio?

Great content, just a big long winded. It would be nice if he kept it brief.

Brilliant

Great video, Tim. Thank you, so much for this!!

And then there was Covid...

🙏👍😊

Starts at 5:33 I cannot stand people talking without substance. Thanks for the videos. But more signal, less noise.

Your videos are gold.

Thank you so much for explaining in detail, very helpful in understanding. I am a mature (age 35 going on 36) BSc Accounting and Finance student.

Excellent, just excellent, please make more

At first i though he said savile cross

i would so go to class if you where my professor to learn an more some haha yum eye candy

thank you... it was very informational

great video

NICE ADVICE, THANKS

Great info.

NICE ADVICE, THANKS

Awesome!

please get to the point quickly. you have really good videos. :-)

Hihi, have you seen this program called the Intellitus Cash System? (google it). My mother says it gets people tons of income.

obviously your using hindsight, but your still wrong as you said people were buying/selling regardless of the red flags so someone made some money plus that is what happens if you buy stock for the long term which i think you suggest?

Far to much talking and not enough action. Get to the point mate we dont have all day

I would've just looked at the FREE CASH FLOW and taken it as a red alarm.