Chp2and3

  1. Financial statements (4 basic ones)?
    • 1. Balance sheets -
    • -assets (current and longterm assets and marketable securites) , compared to
    • -Liabilties (what is owed), the difference is called:
    • -Owners Equity or called Net Worth

    • 2.Income Statement -
    • -Revenue is the result of selling goods or services.
    • - Revenue minus expenses = Income or Loss

    • 3.Net Cash Flow Statement -
    • - Determine Net Income + Depreciation

    • 4.Statement of Retained Earnings
    • - Used for budgeting purposes
  2. Financial section contains?
    has Balance sheet, Income statement, Net Cash flow statement, Statement of Retained Earnings
  3. Narrative section
    • a story - convey to people a message I want to share .
    • Usually from the CEO. Talks about growth of the company. Talks about employees.
  4. Ratios are used for?
    measure comparative performance
  5. Financial Ratios?
    • Liquidy ratios - Measure a firms abililty to pay debts as they come due
    • Asset mgmt ratios - Measure how effectively a firm manages it's assets
    • Debt mgmt ratios - Measure the extent to which a firm uses debt financing.
    • Profitability ratios - measure the net result of all financing policies and operating decisions
    • Market Value Ratio - measure stock price performance, earnings per share. share price per earnings.
  6. Trend Analysis ?
    • - compare to yourself
    • - compare to industry stds
    • - compare to an industry leader (benchmark company)
  7. Sources of info that you can compare to benchmark company is called:
    • -Dunn and Bradstreet , creates commercial credit bureau reports. The commercial version of a Equafax
    • - Standard and Poor - rates bonds
    • - Moody's - rates bonds
    • - Fitch - rates bonds
    • - Value line - analyze stock of a company
    • broke it down to 30 day increments
Author
bvrider1
ID
334434
Card Set
Chp2and3
Description
Chp2and3 FINC322
Updated