Share these talks and lectures with your colleagues
Invite colleaguesWe noted you are experiencing viewing problems
-
Check with your IT department that JWPlatform, JWPlayer and Amazon AWS & CloudFront are not being blocked by your network. The relevant domains are *.jwplatform.com, *.jwpsrv.com, *.jwpcdn.com, jwpltx.com, jwpsrv.a.ssl.fastly.net, *.amazonaws.com and *.cloudfront.net. The relevant ports are 80 and 443.
-
Check the following talk links to see which ones work correctly:
Auto Mode
HTTP Progressive Download Send us your results from the above test links at access@hstalks.com and we will contact you with further advice on troubleshooting your viewing problems. -
No luck yet? More tips for troubleshooting viewing issues
-
Contact HST Support access@hstalks.com
-
Please review our troubleshooting guide for tips and advice on resolving your viewing problems.
-
For additional help, please don't hesitate to contact HST support access@hstalks.com
We hope you have enjoyed this limited-length demo
This is a limited length demo talk; you may
login or
review methods of
obtaining more access.
Printable Handouts
Navigable Slide Index
- Introduction
- Financial Statement Analysis
- Financial Statements
- The Balance Sheet
- The Income Statement
- Statement of Retained Earnings
- Statement of Cash Flows
- Apple’s Balance Sheet (1)
- Apple’s Balance Sheet (2)
- General Electric’s Income Statement
- IBM’s Cash Flow Statement (1)
- IBM’s Cash Flow Statement (2)
- IBM’s Cash Flow Statement (3)
- Multiples
- Thank You
This material is restricted to subscribers.
Topics Covered
- Basic financial statements
- Apple’s balance sheet
- General Electric’s income statement
- IBM’s cash flow statement
- Multiples
Links
Series:
Categories:
Bite-size Case Studies:
Talk Citation
McDonald, M. (2020, July 30). Financial statement analysis [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved November 7, 2024, from https://doi.org/10.69645/MMAV4419.Export Citation (RIS)
Publication History
Other Talks in the Series: Introduction to Financial Analysis
Transcript
Please wait while the transcript is being prepared...
0:00
Hello and welcome to Financial Statement Analysis for the CFA exam.
I'm Professor Michael McDonald,
and today I'd like to talk to you about
financial statement analysis in the investments field,
particularly as it relates to the CFA exam.
0:17
Financial statement analysis is a major section on the CFA exam.
You'll need to be able to describe the role of the statement of financial position,
the statement of comprehensive income,
statement of changes in equity,
and the statement of cash flows and think about how
these different statements help us to
evaluate a company's performance and financial position.
0:41
To begin with, let's just start by identifying
the three major types of financial statements.
The three major financial statements that you'll see out there,
regardless of the accounting system that's used are: the balance sheet,
the income statement, and the statement of cash flows.
Each of these tells us something different and
something critical to understanding the health of the business.
That's why, while there are big differences between GAAP and IFRS,
you still see each of these three financial statements forming the core of this system.
In fact, even smaller firms that are say,
privately owned and don't put out GAAP compliant or IFRS compliant financial statements,
they still typically produce these three basic financial statements.
1:29
Let's start with the balance sheet.
The balance sheet gives us the summary of
the financial position for a company at a particular point in time.
It's really composed of three things: assets,
liabilities, and owner's equity,
sometimes called shareholder's equity.
Assets is everything the company owns.
It's their cash, their inventory, their land,
their buildings, equipment, as well as accounts receivable,
which is money owed to the firm,
and then intangible assets,
things like their brand name,
patents they might hold, etc.
Liabilities are everything that the company owes.
That's the accounts payable,
notes payable, mortgage payments, things like that.
The difference between these two, assets minus
liabilities is the net worth of the company essentially.
It's the net assets after we've paid off all of our debts.