In Earnings Quality Analysis , Stewart Kennedy delivers a masterclass in one of the most essential yet misunderstood areas of modern investing—the ability to separate genuine profitability from accounting illusion. This book teaches readers how to look beyond reported earnings and uncover the real economic truth hidden within financial statements. Drawing from decades of market wisdom and forensic accounting insight, Kennedy explains how investors can identify high-quality earnings that are transparent, repeatable, and grounded in cash flow rather than accounting creativity. He shows how to recognize the red flags of manipulation, interpret accrual patterns, and understand how working capital movements reveal the true health of a business. The book begins by defining what “earnings quality” truly means and why it matters for long-term investors. It explores the evolution of financial reporting standards, the influence of GAAP and IFRS, and the growing tension between official results and management-adjusted metrics. From there, Kennedy builds a practical framework that allows readers to evaluate a company’s financial integrity through cash flow analysis, margin consistency, and the relationship between accruals and profitability. Using clear examples and real-world case studies, Earnings Quality Analysis exposes how companies manipulate profits through accounting choices, aggressive revenue recognition, or cost deferrals—and how these tactics eventually unravel. Kennedy arms readers with quantitative tools such as the Sloan Accrual Ratio, Beneish M-Score, and cash-based indicators that reveal whether reported profits are sustainable. Beyond numbers, the book explores the human and behavioral elements behind earnings management, including investor bias, market pressure, and corporate incentives. It reminds readers that financial statements are not just data—they are stories shaped by choices, assumptions, and motivations. Written in a clear and analytical style, this book bridges accounting theory and investment practice. It equips investors, analysts, and finance students with the skills to evaluate corporate transparency and the discipline to rely on facts over appearances. Earnings Quality Analysis is not just about reading statements—it is about reading truth. It teaches the modern investor to trust cash flow over commentary and integrity over illusion. For those who seek to invest with confidence and clarity, this book is an indispensable guide to understanding the real engine of long-term value: high-quality earnings.