Data Verification and Analysis

Function 2 is where collected information becomes usable research. Series 86 expects the analyst to read filings, verify the three financial statements, understand the business model, evaluate management execution, judge accounting quality, and compare key metrics against peers and industry drivers. This is the stage where unsupported stories should fail.

Read this chapter as the quality-control and interpretation layer. Start with filings and financial-statement trends, then move into business-model drivers, working capital and accounting practices, and capital-structure or corporate-action changes that can reset the research view.

Series 86 data verification lessons

In this section

• Series 86 Filings, Financial Statements, and Trend Analysis
  Learn how Series 86 tests SEC filings, income statement, balance sheet, cash flow, segment reporting, guidance, risk factors, and source verification.
• Series 86 Business Model and Operating Drivers
  Learn how Series 86 tests business strategy, revenue drivers, cost structure, management execution, supply chain, customer concentration, product mix, and competitive position.
• Series 86 Working Capital and Accounting Practices
  Learn how Series 86 tests receivables, inventory, payables, cash conversion, accounting-policy comparability, non-GAAP adjustments, and earnings quality.
• Series 86 Capital Structure, Corporate Actions, and Governance
  Learn how Series 86 tests debt, leverage, interest coverage, liquidity, M&A, restructuring, divestitures, return metrics, share count, and governance evidence.