How well is the business doing? Evaluating a firm’s financial condition

Type :

Presentation

Slides :

130 slides

Format :

.ppt

Published date :

05/12/2009

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Summary :

 
 

Table of Contents How well is the business doing? Evaluating a firm’s financial condition Table of Contents

 
  1. Introduction
  2. Evaluating a firm's financial condition
  3. Purpose of financial analysis
  4. Techniques of financial statement analysis
  5. Financial ratios
    1. Ratio categories
  6. What is inventory turnover?
  7. Cash conversion cycle
  8. Cash conversion chart
  9. What is financial leverage?
  10. Du Pont analysis
  11. A study on sustainable growth
  12. Bottom line for use of financial ratios
  13. Components of the income statement
  14. Limitations of financial statement analysis
  15. Comparative analysis of business and economic conditions
  16. Trend analysis
  17. Conclusion

Abstract

The presentation will first talk about the purpose of financial analysis before moving on to the techniques and financial ratios. It will also show how to understand if the company is running a risk of liquidity. It will then talk about current ratios and liquidity of current assets. There will also be a section on accounts receivable turnover followed by the average collection period which will give way to inventory turnovers and how day-to-day operations function. Next the presentation will pick up the various ratios like financial Leverage Ratios and Solvency Ratios and talk about them in more detail along with demonstrating a calculation of Debt Ratio & Debt-Equity Ratio. It will also cover various other points such as sustainable growth, per share data for common stock, etc before concluding with a trend analysis of the percentage changes in financial statement items over a period of time.

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