Analyzing Statements of Cash Flows II
Free CFA Level I lesson in Financial Statement Analysis. 14 min read, ~2,026 words.
Common-size CFS: divide every line by revenue (preferred), or express each inflow as a percent of total inflows and each outflow as a percent of total outflows. FCFF = NI + NCC + Int(1 − t) − FCInv − WCInv, or equivalently CFO + Int(1 − t) − FCInv (US...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- introduction to FSA
- analyzing income statements
- analyzing balance sheets
- analyzing cash flows I
- analyzing cash flows II
- analysis of inventories
- analysis of long-term assets
- long-term liabilities and equity
- analysis of income taxes
- financial reporting quality
- financial analysis techniques
- introduction to financial statement modeling
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