Topic 1: Overall Framework for FA Flashcards
What are the categories of users of financial data
lenders (credit grantors)
investors
mangement
others
What are examples of credit grantors
banks
finance companies
suppliers
bondholders
What are examples of investors
shareholders
What are examples of management
chairman
directors managers
What are examples of ‘other users’
auditors
employees
government
What are the different roles of the analyst?
financial/business analyst
investment analyst
credit analyst
What are the two types of investment analysis
technical analysis
fundamental analysis
Where are the sources of information
financial information
quantified non-financial information
non-quantified information
What are the main areas of analysis
liquidity activity leverage profitability investment
industry ratios
segmental analysis
What are the examples of quantified financial information
annual reports and accounts
interim financial statements
prospectuses and circulars
forecast and reports
What are the examples of quantified non financial information
operating statistics by company
production, demand and employment statistics
official economic statistics
What are the examples of non quantified financial information
chairperson, director and auditor statement and comments
company brochures and newsletters
comments by financial analysts, the press
What are the 5 competitive forces?
rivalry among existing firms threat of new entrants threat of substitute products bargaining power of buyers bargaining power of suppliers
