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
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
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