Lecture 4 Financial Statement Analysis

Lecture 4 Financial Statement Analysis - Click to edit...

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Unformatted text preview: Click to edit Master subtitle style © Xiaohui Liu, 2010 Lecture 4 Financial Statements Analysis © Xiaohui Liu, 2010 11 © Xiaohui Liu, 2010 OBJECTIVES -> UNDERSTAND: © Xiaohui Liu, 2010 22 Purpose and Limitation of Financial Statements Analysis Sustainable Incomes Comprehensive Income Comparative Analysis: Horizontal analysis Vertical analysis Ratio analysis Liquidity Solvency © Xiaohui Liu, 2010 Financial Statements Analysis © Xiaohui Liu, 2010 33 Owners/Stockholders: How good is our investment? Creditors: Will I get my money back? Most often, potential investors: Two key issues: • Survival • Future Performance © Xiaohui Liu, 2010 Limitation © Xiaohui Liu, 2010 44 Notice the nature of Financial accounting: It neither reports market value nor reports only accurate information Only make reasonable comparison and analysis: Alternative accounting principle Industry trend Inflation Etc. © Xiaohui Liu, 2010 Sustainable Incomes © Xiaohui Liu, 2010 55 In order to evaluate a company’s chance of survival and the...
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This note was uploaded on 09/13/2011 for the course AIM 6305 taught by Professor L during the Fall '11 term at University of Texas at Dallas, Richardson.

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Lecture 4 Financial Statement Analysis - Click to edit...

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