Advanced Financial Statement Analysis
FUNDAMENTAL ANALYSIS
Financial Statement Analysis- Analysis of financial position and financial performance
- Interpretation of financial statements – key principles
- Ratio analysis:
Profitability ratios
Efficiency and working capital ratios
Liquidity ratios
Investment ratios
Financial structure ratios
Integration of ratios : Dupont system
- Common size trend analysis
- Financial distress
- The shortcomings of financial statements for analysis
Inventory Analysis
- Inventory valuation methods and impact on ratio analysis
- LIFO reserve and LIFO liquidation
- LIFO to FIFO conversion
Long Lived Assets Analysis
- Capitalizing vs. Expensing
- Depreciation methods and impact on ratio analysis
- Impairment and revaluation
- Leasing vs. Purchasing
- Finance lease vs. Operating lease
VALUATION ANALYSIS
Dividend Discount Cash Flow Analysis- P/E ratio analysis
- P/BV ratio analysis
- P/S ratio analysis
- P/CF ratio analysis
Capital Budgeting
- DCF techniques
- NPV, IRR, MIRR
Corporate Analysis
Capital Budgeting- DCF techniques
- NPV, IRR, MIRR
- Project valuation
- Replacement vs. expansion
Capital Structure
- Debt payout vs. share repurchases
- Dividend tax assumptions
- Factors influencing dividend policy
- Dividend sustainability