Study Guide - University of Phoenix
Week 2 Study Guide: Financial Statement Analysis
Readings and Key Terms
• Ch. 4 of Fundamentals of Corporate Finance
o Financial statement analysis
o Trend analysis
o Benchmark
o Common-size financial statements
o Financial ratio
o Insolvency
o Financial leverage
o Default risk
o Standard Industrial Classification (SIC) System
o North American Industry Classifcation System (NAICS)
• Ch. 18
o Replacement cost
o Book value
o Enterprise value
o Nonoperating assests (NOA)
o Terminal value
o Cash flow
o Free cash flows
o Break-even
o Dividend discount model (DDM)
Content Overview
• Financial ratios
o Understand components of financial ratios.
• Calculate key ratio equations
o Liquidity
• Current ratio
• Quick ratio
• Cash ratio
o Efficiency
• Inventory turnover
• Day’s sales in inventory
• Accounts receivable turnover
• Day’s sales outstanding
• Total asset turnover
• Fixed asset turnover
o Leverage
• Total debt ratio
• Debt-to-equity ratio
• Equity multiplier
• Times interest earned
• Cash coverage
o Profitability
• Gross profit margin
• Operating profit margin
• Net profit margin
• EBIT return on assets
• Return on assets (ROA)
• Return on equity (ROE)
o Market value indicator
• Earnings per share
• Price-earnings ratio
o DuPont equation
• ROE = Net Profit Margin x Total Asset Turnover x Equity Multiplier
• ROE = (Net Income / Net Sales) x (Net Sales / Total Assets) x (Total Assets / Total Equity)
o Interpret financial ratio results
• Interpret financial ratio results against historical company data.
• Interpret financial ratio results against industry benchmarks.
o Business valuation
• Explain why the choice of organizational form is important.
• Describe why cash flow and break-even are important in business.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- university of phoenix portal
- university of phoenix online sign in
- university of phoenix ecampus website
- university of phoenix ecampus portal
- university of phoenix majors list
- university of phoenix bachelor programs
- university of phoenix bachelors cost
- university of phoenix student portal
- university of phoenix ecampus log in
- university of phoenix site down
- university of phoenix biology degree
- university of phoenix employee portal