Financial Analysis

The Profit & Loss, Balance Sheet, and Cash Flow statements are not simply accounting formats. They tell a story only if you know how to read between the lines.

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Free Cash Flow to the Firm (FCFF)

A firm’s Cash Flow Statement can be an invaluable source of information for any financial analyst. It shows how the

Free Cash Flow to the Firm (FCFF)

A firm’s Cash Flow Statement can be an invaluable source of information for any financial analyst. It shows how the business generates cash, what it uses it for, and how it manages its cash balance. Analysts can also calculate certain cash flow metrics that will get them even more insight....
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Profitability Ratios

Profitability ratios gauge how profitable a company is. Quite simply put, a company is profitable when the revenue it

Profitability Ratios

Profitability ratios gauge how profitable a company is. Quite simply put, a company is profitable when the revenue it generates is higher than the sum of its expenses. There are different levels at which the company can be profitable or unprofitable, and they are all displayed on the Income...
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Liquidity Ratios

Liquidity is the ability to convert an asset into cash quickly, and ideally without losing money. By its nature,

Liquidity Ratios

Liquidity is the ability to convert an asset into cash quickly, and ideally without losing money. By its nature, liquidity addresses the short term, but it is not a trivial matter. By some accounts, it was liquidity problems that caused Lehman Brothers’ bankruptcy, one of the biggest financial calamities...
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The Profit & Loss, Balance Sheet, and Cash Flow statements are not simply accounting formats. They tell a story if you know how to read between the lines.

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Activity ratios (a.k.a. efficiency ratios or turnover multiples) measure how well a firm utilizes its assets and liabilities in its operations. Or, in lame
Ratios are a simple but powerful tool in the financial analyst’s toolbox. A ratio indicates how many times one number () contains another number

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