Chapter 9 - Company Analysis : Introduction
Chapter 9 - Company Analysis : Introduction
Whenever we are thinking of investing in a company it is vital that we understand what...
9.1 Income Statement
The income statement is basically the first financial statement you will come across in the annual report...
9.2 Key Concepts
9.2 Key Concepts
Revenue, also commonly known as sales, is generally the most straightforward part of the income statement.
9.3 Balance Sheet
9.3 Balance Sheet
It is a summary of all the liabilities and assets of a company giving us a picture of the company's...
9.4 Main Components of Balance Sheet
9.4 Main Components of Balance Sheet
Assets, liability and equity are the three main components of the balance sheet.
9.5 Cash Flow Statement
While most investors who pursue a company's financials will look at its income statement and balance...
9.6 Three Sections of the Cash FLow
9.6 Three Sections of the Cash FLow
Companies produce and consume cash in different ways and so the cash flow statement is divided into three...
9.7 Yardstick for analyzing a company
9.7 Yardstick for analyzing a company
You should do a company analysis considering every aspect. For easy analysis, you may use the following as...
9.8 Understanding ratio analysis
9.8 Understanding ratio analysis
In companies annual reports we will come across many jargons like EPS, BV, among others.
9.9 Stock market related ratios
Since for most companies preference dividends are negligible or preference shares do not exist, we...
9.10 P/E ratio (Price-earnings ratio)
This is the most important ratio for guessing the price of a share.
9.11 Ratios & market prices
For better understanding, you need to know certain fundamentals related to the cause of price...