limits, changing from the last-in first-out method of valuing inventory to the first-in first-out method, cutting nonmandatory expenses for short periods, or attributing regular business expenses to a one-off, nonrecurring event. The Bottom Line Investors should always do their homework before investing in a stock. That means analyzing the company’s financial report to get a true picture of how it is doing. Don’t just fixate on the headline numbers the company wants you to read or trust that analysts or somebody else will do the job on your behalf. Go through everything yourself and do it with a skeptical eye.