Week 12,13 Financial Statement Analysis
After studying Chapter 6, you should be able to:
l Understand the purpose of basic financial statements and their contents.
l Understand what is meant by “convergence” in accounting standards.
l Explain why financial statement analysis is important to the firm and to outside suppliers of capital.
l Define, calculate, and categorize (according to liquidity, financial leverage, coverage, activity, and profitability) the major financial ratios and understand what they can tell us about the firm.
l Define, calculate, and discuss a firm’s operating cycle and cash cycle.
l Use ratios to analyze a firm’s health and then recommend reasonable alternative courses of action to improve the health of the firm.
l Analyze a firm’s return on investment (i.e., “earning power”) and return on equity using a Du Pont approach. l Understand the limitations of financial ratio analysis.
l Use trend analysis, common-size analysis, and index analysis to gain additional insights into a firm’s performance
Download Files
- Week 1,2 Role of financial management
- Week 3,4 The Business, Tax, and Financial Environments
- Week 5,6 : The Time Value of Money
- Week 7,8 The Valuation of Long-Term Securities
- Week 10,11Risk and Return
- Week 12,13 Financial Statement Analysis
- Week14,15 : Funds Analysis, Cash-Flow Analysis, and Financial Planning
- Week 16 Capital Budgeting Techniques
- WEEK 17 FINAL TERM EXAMS
- Chapters 9
- Department Economics
- Teacher
Farah Nazir
