how to do financial_research

May 28th, 2015
Studypool Tutor
Aberystwyth University
Course: financial_research
Price: $20 USD

Tutor description

Statement of Comprehensive Income: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profit.

Word Count: 4059
Showing Page: 1/15
FINANCIAL ANALYSIS OF BUSINESS STATEMENTSThe process of examining various financial statement items with the objective of performance, and perhaps more importantly, projecting future performance and financial condition.BROAD CATEGORIES OF RISKGeneral Economic RiskFinancial Price Risk Liquidity Risk (Operational and Agency implications)Long-Term Solvency Risk/Risk of Financial DistressFinancial Structure RiskAgency Risk (per the Incentives of Management)Operational Risk/Execution RiskSales Risk (Acquiring and Retaining Clients)Credit Risk/Receivables Risk/CollateralizationBrand/Marketing RiskTechnological Obsolescence RiskIndividual Project Risk (And Opportunity Risk)DIMENSIONS OF RISKHistorical trendsVariabilityComparable benchmarking Lifecycle stageIndustryPeer firmsOPERATING EFFICIENCY3 key areas of operating efficiency:A/R (A/R days should not go up <-- reduction of operating cash flows, pejorative implications for operating margin, increased probability of a write down)Inventory (Inventory Days should not go up <-- financing inventory with higher cash outflows and increased probability of a write down)A/P (decrease --> higher cash outflows)CRITICAL QUESTIONSHas the firm made a change in its product, geographic, or customer mix that would affect the comparability of the ratios over time?Has the firm made a major acquisition or divestiture?Has the firm changed its methods of accounting over time?COMMON SIZE AND TREND FINANCIAL STAT

Review from student

Studypool Student
" This tutor is great! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors