Chapter 01 - 006 Flashcards
0
Q
Two different set of questions that can help focus financial analysis
P13
A
1.
2.
1
Q
Financial analysis
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A
The use of …
2
Q
Future oriented questions
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1.
2.
3
Q
Questions that assess a company’s track record and its ability to deliver on expected financial performance
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1.
2.
4
Q
Financial analysis consists of three broad areas
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1.
2.
3.
5
Q
Profitability analysis
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- The evaluation of …
- Focus on …
- Includes evaluation of …
- Also focus on reasons …
6
Q
Risk analysis
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A
- The evaluation of a …
2. Involve assessing …
7
Q
Why is risk analysis often discussed in the context of credit analysis?
P14
A
Z
8
Q
Why is risk analysis important to equity analysis too?
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Z
9
Q
Analysis of cash flows
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- The evaluation of how …
2. Provides insights …
10
Q
Prospective analysis
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A
- The forecasting …
- Draws on …
- The output :
- A relatively …
11
Q
Valuation
A
- Main objective …
2. Refers to …
