Financial Statement Analysis

Objectives

• Understand key financial ratios
• Calculate cash flow from public financial statements

Reading

• Chapter 14: From Financial Statements to Economic Cash Flows

Assignments

• Financial Statement Analysis

Financial Statements and Cash Flows

Accessing Financial Statements of Public Companies

Common Size Financial Statements

Cash Flows and Financial Statements

DuPont Analysis

Earnings Management

Earnings Quality

Discounted Cash Flow Valuation

The Weighted Average Cost of Capital (WACC)

Free Cash Flow to the Firm

Sources and Uses of Cash

Net Working Capital

DCF using FCFF

Sustainable Growth Rate

Accounting Review

Balance Sheet and Income Statement

Financial Statements

Straight Line Depreciation

Double Declining Balance Depreciation

Deferred Tax Asset

Deferred Tax Liability

Additional Paid-in Capital

Altman Z score

Optional

What is Factoring?