TAILIEUCHUNG - Ebook Financial statement analysis (3rd edition): Part 2

(BQ) Part 2 book "Financial statement analysis" has contents: Forecasts and security analysis (forecasting financial statements, credit analysis, equity analysis) | PART four Forecasts and Security Analysis CHAPTER 12 Forecasting Financial Statements nalysis of a company’s current financial statements, as described in the Chapters 2 through 4, is enlightening, but not as enlightening as the analysis of its future financial statements. After all, it is future earnings and dividends that determine the value of a company’s stock (see Chapter 14) and the relative likelihood of future timely payments of debt service that determines credit quality (see Chapter 13). To be sure, investors rely to some extent on the past as an indication of the future. Because already-reported financials are available to everyone, however, studying them is unlikely to provide any significant advantage over competing investors. To capture fundamental value that is not already reflected in securities prices, the analyst must act on the earnings and credit quality measures that will appear on future statements. Naturally, the analyst cannot know with certainty what a company’s future financial statements will look like. Neither are financial projections mere guesswork, however. The process is an extension of historical patterns and relationships, based on assumptions about future economic conditions, market behavior, and managerial actions. Financial projections will correspond to actual future results only to the extent that the assumptions prove accurate. Analysts should therefore energetically gather information beyond the statements themselves. They must constantly seek to improve the quality of their assumptions by expanding their contacts among customers, suppliers, and competitors of the companies they analyze. A A TYPICAL ONE-YEAR PROJECTION The following one-year projection works through the effects of the analyst’s assumptions on all three basic financial statements. There is probably no better way than following the numbers in this manner to appreciate .

• Tài chính doanh nghiệp
• Financial statement analysis
• Financial statement
• Security analysis
• Forecasting financial statements
• Credit analysis
• Equity analysis
• International financial statement
• International financial statement analysis
• Financial reporting
• Financial analysis techniques
• Financial reporting mechanics
• Financial reporting quality
• Financial decisions
• Lecture Financial statement analysis
• Business analysis
• Financial statement analysis techniques
• Efficient market
• Supplementary information
• Income statements
• Balance sheets
• Cash flow statements
• Inventory valuation methods
• Long lived assets
• Noncurrent liabilities
• Credit quality
• Income taxes
• Postemployment benefit plans
• Intercorporate investments
• Multinational operations
• Evaluating quality
• Cash flow analysis
• Statement of cash flows
• Accrual accounting
• Prospective analysis
• Projected income statement
• Projected balance sheet
• Accounting information
• Analysis environment
• Current ratio
• Operating activity analysis
• Invested capital
• Profitability analysis
• Return on invested capital
• Earnings persistence
• Recasting rarnings