文档介绍：Financial Statement Analysis
Financial Statement Analysis Contents
Overview and objective of financial statement analysis
Review and Re-formatting Statements for Financial Analysis
e Statement – EBITDA and NOPLAT
Cash Flow Statement - Free Cash Flow and Equity Cash Flow
Financial ratio analysis
Management Performance
Valuation
Credit Analysis
Financial Model Drivers
Reference Slides
Financial Ratio Calculations
Discussion of Economic Profit
Financial Statement Analysis - Introduction
Financial Statement Analysis should tell a story about pany – How profitable is pany, what are the trends, how much risk is there etc.
You should fortable in reading various different financial statements to be effective at financial modeling and financial analysis.
Financial statement analysis is also important in:
Assessing management performance of pany and whether projections of improvement or sustainability are reasonable.
Assessing the value of pany from historic performance.
Assessing the reasonableness of financial projections provided by pany or the validity of earnings projections
Assessing whether the financial structure of pany is of investment grade quality
Objectives of Financial Statement Analysis
Financial statement analysis is like detective work – How can we use information in financial statements to make assessments of various issues. The financials should paint a picture of what has happened to pany:
How can we quickly review the e statement, balance sheet and cash flow statement to determine how the stock market value of pares to inherent value.
How can we look the financial statements and assess risks associated with pany and whether pany has sufficient cash flow to pay off debt.
Finance and valuation are about projecting the future -- how can financial statement analysis be used in making projections.
The problem in any financial analysis and valuation is that measuring risk is very difficult
Double Counting and Judgments in Financial Ratio Analysis