Financial Statement Analysis: Discover the 3 key types, learn how to analyze them like a pro, and apply your knowledge with a real-world case study.
This is what can be referred to as a bridge chapter in the sense that it provides the setup for what comes from this point forward while building upon the introduction from the opening chapter. It is sometimes easy to shortchange such topics because they appear ancillary to the primary focus...
However, although bridges are the means to the destination rather than the destination itself, it is impossible to get there without them. The same is true of this chapter. The materials covered are necessary in laying the groundwork for understanding the purpose of finance in a corporate ...
Ethical and Professional Standards, Financial Statement Analysis, Equity Investments, Fixed Income, and Portfolio Management and Wealth Planning are the key topics for passing Level II with topic weights of 10–15%. You can register for Level II of the CFA exam once you pass Level I. ...
“What is the shortest chain to connect Kevin Bacon to Miss Piggy?” (shortest path analysis, as used in the Six Degrees game above) “Who has worked with the largest number of actors?” (degree centrality) “What is the average distance between Kevin Bacon and all other actors?” (close...
Understanding how your customers behave and why they do it might sound like a nice-to-have, but why is it fundamental to driving business results andcustomer satisfaction? Here are the top reasons why customer behavior analysis is important for businesses: ...
If they’re not managed correctly, they may cause financial instability and hinder growth — that’s why it’s so important to track expenses diligently and understand where your money is going. So, what are considered operating expenses? They typically encompass a wide range of day-to-day ...
When you amortize goodwill, no cash is paid out. But it’s shown on the income statement as an expense, so it lowers net income, which lowers earnings per share. In a financial worldobsessed with earnings per share, companies that in the past had a lot of M&A often faced a “valuatio...
This financial assertion states that the different components of a financial statement, such as assets, liabilities, revenues, and expenses, have all been properly classified within the statement. One of the ways to test this assertion is to redo all the calculations. For instance, the assertion ...
The balance sheet gives investors and creditors a snapshot of how effectively a company's management uses its resources. Just like the other financial statements, the balance sheet is used for financial analysis and calculating financial ratios. Here are a few examples of line items on a ba...