Business Finance Chapter 3 Analysis of Financial Statements 3.5 Financial Statement Analysis

Financial Statement Analysis - Business Finance - ثاني ثانوي

PART 1

Chapter 1 An Introduction to Basic Finance

An Introduction to Basic Finance

1.1 The Divisions of Finance

1.2 Key Financial Concepts

1.3 Finance and Other Business Disciplines

Summary

Chapter 2 The Role of Financial Markets and Financial Intermediaries

The Role of Financial Markets and Financial Intermediaries

2.1 Financial Markets

2.2 Financial Intermediaries

2.3 Regulation of Financial Institutions

Summary

Chapter 3 Analysis of Financial Statements

Analysis of Financial Statements

3.1 General Accounting Principles

3.2 The Balance Sheet

3.3 The Income Statement

3.4 Statement of Cash Flows

3.5 Financial Statement Analysis

3.6 Liquidity Ratios

3.7 Activity Ratios

3.8 Profitability Ratios

3.9 Leverage Ratios

3.10 Coverage Ratios

3.11 Limitations of Accounting Data

Summary

PART 2

Chapter 4 An Introduction to Financial Markets

An Introduction to Financial Markets

4.1 Markets

4.2 The Mechanics of Investing in Securities

4.3 Special Security Purchases

4.4 Measures of Securities Prices

4.5 Foreign Securities

4.6 Competition in the Securities Markets

Summary

Chapter 5 Opportunity Costs and the Time Value of Money

Opportunity Costs and the Time Value of Money

5.1 Opportunity Costs

5.2 The Future Value of a Single Amount

5.3 The Future Value of a Series of Amounts (Annuity)

5.4 The Present Value of a Single Amount

5.5 The Present Value of a Series of Amounts (Annuity)

5.6 Other Time Value of Money Situations

Summary

Chapter 6 Risk and Its Measurements

Risk and Its Measurements

6.1 Risk

6.2 The Return on an Investment

6.3 The Sources of Risk

6.4 Risk Measurements

6.5 Risk Management Strategies

Summary

Chapter 7 Stock and Bonds

Stock and Bonds

7.1 Sources of Funding

7.2 Common Stock

7.3 Dividend Policy

7.4 Preferred Stock

7.5 Bonds

7.6 Retiring Debt

Summary

Chapter 8 Cost of Capital

Cost of Capital

8.1 Cost of Capital Components

8.2 A Weighted-Average Cost of Capital

8.3 The Optimal Capital Structure

8.4 Other Capital Structure Issues

Summary

Glossary

3.5 Financial Statement Analysis

Financial Statement Analysis

3.5a Vertical Analysis

Vertical analysis

3.5 Financial Statement Analysis

FIGURE 3.9 Vertical Analysis of a Financial Statement

3.5b Horizontal Analysis

Horizontal analysis

FIGURE 3.10 Horizontal Analysis of a Financial Statement

3.5c Ratio Analysis of Financial Statements

Ratio analysis

3.5 Financial Statement Analysis

FI G U R E 3.11 Types of Ratio Analysis

Profitability ratios

Profitability ratios

Liquidity ratios

Activity ratios

Leverage ratios

Coverage ratios

3.5 Financial Statement Analysis

3.5d Time Series and Cross-Sectional Analysis

Time series analysis

Cross-sectional analysis

How can time series and cross-sectional data help analysts understand a company’s performance?

3.5 Financial Statement Analysis

3.5e The Value of Ratios as a Tool for Analysis

3.5 Financial Statement Analysis

Why is it useful to be able to understand how well a company is performing?

In the sections that follow, several ratios