Chapter Outline of Financial Statements Analysis

Financial Statements Analysis

Ratio Analysis

The Du Pont Identity

Free Cash Flow

Current Ratio = CA / CL

QUICK Ratio = (CA – Inventory) / CL

Cash Ratio = Cash / CL

The Analytical Hierarchical Process (AHP)

https://wiki.mbalib.com/wiki/%E5%B1%82%E6%AC%A1%E5%88%86%E6%9E%90%E6%B3%95

PPT Resource

https://wenku.baidu.com/view/a7e47180d4d8d15abe234ee3.html

FV (Future Value) = C0 X (1 + r)

PV(Present Value ) = C1 / (1 + r)

C1 is cash flow at date 1.

Net Present Value

The Net Present Value(NPV) of an investment is the present value of the expected caash flows, less the cost of the investment.

NPV = -Cost + PV
$$ PV = \frac{C_T}{(1 + r)^T} $$

  • PV
  • FV
  • T
  • R