About This Chapter
Who's It For?
Anyone who needs help learning or mastering the ways to analyze financial statements will benefit from the lessons in this chapter. There is no faster or easier way to learn how to analyze financial statements. Among those who would benefit are:
- Students who have fallen behind in understanding working with financial statements
- Students who struggle with learning disabilities or learning differences, including autism and ADHD
- Students who prefer multiple ways of learning finance (visual or auditory)
- Students who have missed class time and need to catch up
- Students who need an efficient way to learn about analyzing financial statements
- Students who struggle to understand their teachers
- Students who attend schools without extra finance learning resources
How It Works:
- Find videos in our course that cover what you need to learn or review.
- Press play and watch the video lesson.
- Refer to the video transcripts to reinforce your learning.
- Test your understanding of each lesson with short quizzes.
- Verify you're ready by completing the analyzing financial statements chapter exam.
Why It Works:
- Study Efficiently: Skip what you know, review what you don't.
- Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
- Be Ready on Test Day: Use the analyzing financial statements chapter exam to be prepared.
- Get Extra Support: Ask our subject-matter experts any question about analyzing financial statements. They're here to help!
- Study With Flexibility: Watch videos on any web-ready device.
Students Will Review:
This chapter helps students review the concepts in an analyzing financial statements unit of a standard corporate finance course. Topics covered include:
- The purpose and elements of financial statement analysis
- Methods of horizontal and vertical analysis of financial statements
- The formula and limitations of financial ratio analysis
- The types of financial ratios for companies
1. Financial Statement Analysis: Definition, Purpose, Elements & Examples
In this lesson, we'll define financial statement analysis and discuss the main categories. You'll also learn how to calculate a financial ratio in each category and analyze the results.
2. Straight-Line Depreciation: Method, Formula & Example
Businesses must account for the annually decreasing value of fixed assets like furniture or equipment. This lesson explores the straight-line depreciation method and how it is used to decrease the value of a fixed asset over a specific span of time.
3. Times Interest Earned Ratio: Formula & Analysis
In this lesson, we'll discuss times interest earned and calculate and analyze the ratio. You'll also learn the relationship between interest rates and risk.
4. Total Expenses: Ratio & Formula
In this lesson, you will learn about the total expenses ratio (TER). We will define the variables used in the calculation, and we will look at how the ratio is used.
5. What is a Fiscal Year? - Definition & Example
Learn why companies have different fiscal years and some of the advantages to doing this in this video. Find out how a fiscal year differs from a calendar year and study some current examples.
6. What is Fair Value? - Definition, Principle, Measurement & Examples
Determining the value of an item, asset, stock, and even a company can be a difficult task. This lesson reviews the importance of understanding fair value and how to arrive at the fair value of items.
7. What Is Financing? - Definition & Types
People borrow money to purchase homes, cars, boats, or anything else they don't have the money for at the moment they want to make the purchase. In this lesson, learn what financing is, as well as different types of financing used every day.
8. What is Preferred Stock? - Definition, Types & Advantages
This lesson will define the hybrid investment security called preferred stock. The various types of preferred stocks will be explained and advantages of each will be explored.
9. What Is Quality Planning? - Definition, Process & Tools
Companies want to produce quality work that they're happy with and customers can appreciate. One way to do so is a process known as quality planning. Come along as we learn what quality planning is, the process, and what tools are valuable.
10. What is the Prime Rate? - History & Explanation
The Federal Funds Rate gets the attention of the media, but it's the prime rate that really matters to consumers. In this lesson, you'll learn what the prime rate is, how it is established, and why it matters.
11. What Is Working Capital? - Definition & Formula
This lesson explains what working capital is, how it is used in a business, and why businesses need working capital to stay functional. We'll also look at the formula used to calculate working capital.
12. Projected Income: Example & Explanation
What is projected income, and why would you need to know how to estimate it? In this lesson, we'll discuss what it is, how to calculate it and why you might need to create a projection.
13. What Are Company Financial Statements? - Definition, Analysis & Examples
In this lesson, you'll learn about the financial statements that a company must issue for the purpose of financial reporting. You'll learn what the statements are, what order they are prepared in, and what each statement includes.
14. What Is Cash Flow? - Definition, Calculation & Example
Companies can't function without sufficient cash flow. In this lesson, you'll learn what cash flow is and how to calculate it, and you'll be provided some examples. You'll also have a chance to take a short quiz.
15. What Is Debt Ratio? - Calculation & Overview
In this lesson, you'll learn what a debt ratio is in accounting. You will also learn how to calculate a company's debt ratio and why it is important to financers and investors.
16. Fundamental vs. Technical Analysis
In this lesson you will learn what fundamental and technical analysis is, the difference between the two strategies, the pitfalls for each strategy, and how to determine which is best for you.
17. Fundamental Analysis: Definition & Examples
In this lesson you will learn what Fundamental Analysis is, how its used to evaluate shares in a company, and what pieces of information are used to complete that evaluation.
18. Common Technical Analysis Indicators
Technical analysis indicators help in studying the price charts of all types of financial instruments. In this lesson we will look at some of the more common indicators, their characteristics and uses.
19. Intentionally Defective Grantor Trust (IDGT)
In this lesson, you'll learn about an intentionally defective grantor trust (IDGT). This trust takes advantage of two different sets of tax law interpretations.
20. Common Size Analysis: Definition & Examples
There are many methods that a business can use to compare its financial results to that of its competitors to see how successful that business is. In this lesson, you will learn about common size analysis.
21. What is a Swap Contract? - Definition & Examples
This lesson describes and explains the mechanics of interest rate swaps and other swap contracts. You'll also learn how swaps are used by borrowers and investors to reduce risk, add risk, or exchange one type of risk exposure for another.
22. Time Series Analysis & Its Applications
In this lesson, we will explain time series analysis, its purpose and uses. We will define trend, cyclical and seasonal variances. We will solve a real-world business problem using time series analysis.
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Other chapters within the Corporate Finance: Help & Review course
- Introduction to Corporations: Help & Review
- Stockholders & Stakeholders: Help & Review
- Business Capital & Investments: Help & Review
- Raising Capital for Business: Help & Review
- Corporate Spending & Taxation: Help & Review
- Financial Accounting: Help & Review
- Financial Statements: Help & Review
- Government-Business Relations: Help & Review
- Securities & Anti-Trust Laws: Help & Review
- Accounting Risk & Return: Help & Review
- Options, Bankruptcy & Corporate Finance
- Reform & Emerging Global Markets