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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
Financial section contains?

has Balance sheet, Income statement, Net Cash flow statement, Statement of Retained Earnings
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.
Ratios are used for?

measure comparative performance
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.
Trend Analysis ?
- - compare to yourself
- - compare to industry stds
- - compare to an industry leader (benchmark company)
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

334434

Card Set

Chp2and3

Description

Chp2and3 FINC322

Updated

2017-09-20T22:46:05Z

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