6. Balance Sheet (Statement of Financial Position)
ï Presents the financial position of a company at a specific point in
time, usually the end of a fiscal period.
ï Key components include assets (current assets and non-current
assets), liabilities (current liabilities and non-current liabilities), and
shareholders' equity (common stock, retained earnings, and
additional paid-in capital).
ï Demonstrates the company's assets, liabilities, and shareholders'
equity, providing insights into its financial health and liquidity.
7.
8. Income Statement (Profit and Loss Statement P&L)
ï Provides a summary of a company's revenues, expenses, gains,
and losses over a specific period, typically quarterly or annually.
ï Shows whether a company is making a profit or incurring losses
during the period.
9.
10. Cash Flow Statement
ï Shows the inflow and outflow of cash and cash equivalents from
operating, investing, and financing activities during a specified
period.
ï Key sections include operating activities (cash flow from operations),
investing activities (cash flow from investments), financing activities
(cash flow from financing), and net change in cash and cash
equivalents.
ï Provides information on a company's ability to generate cash, meet
its obligations, and invest in future growth.
11.
12. Statement of Changes in Equity
(Statement of Shareholders' Equity)
ï Summarizes changes in shareholders' equity over a specific period,
typically a fiscal quarter or year.
ï This information ties back to a balance sheet for the same period;
the ending balance on the change of equity statement equals the
total equity reported on the balance sheet.
ï Key components include beginning balance of shareholders' equity,
net income/loss, dividends, stock issuances or repurchases, and
other changes affecting equity.
15. Financial Ratios
ï Ratios created with the use of numerical values taken from
financial statements to gain meaningful information about a
company.
ï The numbers found on a companyâs financial statements â
balance sheet, income statement, and cash flow statement â
are used to perform quantitative analysis and assess a
companyâs liquidity, leverage, growth, margins, profitability,
rates of return, valuation, and more.
16.
17.
18. Liquidity Ratios
These ratios measure a company's ability to meet its
short-term obligations.
ï Current Ratio
ï Quick (Acid) Ratio
20. Leverage Ratios
These ratios measure the extent to which a company
relies on debt financing.
ï Debt Ratio
ï Debt to Equity Ratio
21.
22. Efficiency Ratios
These ratios measure how effectively a company uses
its assets and liabilities.
ï Asset Turnover Ratio
ï Inventory Turnover Ratio
ï AR Turnover Ratio
ï AP Turnover Ratio
23.
24. Profitability Ratios
These ratios measure a company's ability to generate
profits relative to its revenue, assets, or equity.
ï GP Margin
ï OP Margin
ï NP Margin
ï ROA
ï ROE
25.
26. Market Value Ratios
These ratios measure investors' perception of a
company's value and performance.
ï P/E Ratio
ï M/B Ratio