Youtor
The Tools of Financial Statement Analysis
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=yuF3bMuu3Y8
We can use the following tools to analyze a company's financial statements: • (1) vertical analysis. • This includes the common-size income statement (each line item is expressed as a percentage of sales) and the common-size balance sheet (each line item is expressed as a percentage of total assets) • (2) horizontal analysis. • This includes a trend income statement and a percentage change income statement/balance sheet • (3) cause-of-change analysis. • We can understand why net income changed from one period to the next by separately identifying the individual effects of a change in sales, a change in margins, a change in a specific expense account, etc. • (4) ratio analysis. • This can tell us how quickly a company sells its inventory, collects cash from customers, and pays suppliers. We can analyze the company's profit margins, rate of return, short-term liquidity, long-term solvency, and efficiency. • (5) DuPont analysis. • We can disaggregate ROA and ROE into their component parts to learn why (a) the company's performance is improving or deteriorating and/or (b) why the company is outperforming/underperforming its competitors. • (6) quality of earnings. • We can assess the likelihood the company has manipulated its financial statements to overstate sales and/or earnings. • — • Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. • — • SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • • A 44-PAGE GUIDE TO U.S. TAXATION • • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • • MANY MORE FREE PDF GUIDES AND SPREADSHEETS • http://eepurl.com/dIaa5z • — • SUPPORT EDSPIRA ON PATREON • * / prof_mclaughlin • — • GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT • https://edspira.thinkific.com • — • LISTEN TO THE SCHEME PODCAST • Apple Podcasts: https://podcasts.apple.com/us/podcast... • Spotify: https://open.spotify.com/show/4WaNTqV... • Website: https://www.edspira.com/podcast-2/ • — • GET TAX TIPS ON TIKTOK • / prof_mclaughlin • — • ACCESS INDEX OF VIDEOS • https://www.edspira.com/index • — • CONNECT WITH EDSPIRA • Facebook: / edspira • Instagram: / edspiradotcom • LinkedIn: / edspira • — • CONNECT WITH MICHAEL • Twitter: / prof_mclaughlin • LinkedIn: / prof-michael-mclaughlin • — • ABOUT EDSPIRA AND ITS CREATOR • https://www.edspira.com/about/ • https://michaelmclaughlin.com
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