Chapter 13: Financial Analysis Techniques

In this section

• Tools and Techniques for Evaluating Performance
  Tools and Techniques for Evaluating Performance (CFA Level 1): Gathering a Comprehensive Data Set, Establishing a Baseline and Peer Comparison, and Ratio Analysis: The Cornerstone. Key definitions, formulas, and exam tips.
• Ratio Analysis (Liquidity, Solvency, Profitability, and Valuation Ratios)
  Ratio Analysis (Liquidity, Solvency, Profitability, and Valuation Ratios) (CFA Level 1): Role of Ratio Analysis in Advanced Portfolio, Liquidity Ratios, and Current Ratio. Key definitions, formulas, and exam tips.
• DuPont Analysis and Extensions
  DuPont Analysis and Extensions (CFA Level 1): Classic DuPont Formula, Diagram: Classic DuPont Decomposition, and Why These Components Matter. Key definitions, formulas, and exam tips.
• Industry-Specific Ratios and Benchmarking
  Industry-Specific Ratios and Benchmarking (CFA Level 1): Why Industry-Specific Ratios Matter, Banking and Financial Institutions, and Retail. Key definitions, formulas, and exam tips.
• Horizontal, Vertical, and Trend Analysis Techniques
  Horizontal, Vertical, and Trend Analysis Techniques (CFA Level 1): Horizontal Analysis: Comparing Across Multiple Periods, Key Concepts, and Applications Across Statements. Key definitions, formulas, and exam tips.
• Cash Flow Ratios for Performance Evaluation
  Cash Flow Ratios for Performance Evaluation (CFA Level 1): Rationale for Cash Flow Analysis, Limitations of Accrual Accounting, and Why Cash Flow Ratios Matter. Key definitions, formulas, and exam tips.
• Segment-Level Financial Analysis
  Segment-Level Financial Analysis (CFA Level 1): Why Segment-Level Analysis Matters, Key Segment Disclosures, and Overhead and Corporate Cost Allocation. Key definitions, formulas, and exam tips.
• Global Industry Classification Benchmark (GICS) in Peer Analysis
  Global Industry Classification Benchmark (GICS) in Peer Analysis (CFA Level 1): Understanding the Role of GICS in Peer Analysis, GICS Classification Structure, and Why GICS Matters for Peer Analysis. Key definitions, formulas, and exam tips.
• Specialized Ratios and KPIs for Retail, Software, and Extractive Industries
  Specialized Ratios and KPIs for Retail, Software, and Extractive Industries (CFA Level 1): Specialized Metrics for Retail, Inventory Metrics, and Same-Store Sales Growth (SSSG). Key definitions, formulas, and exam tips.
• IFRS vs. US GAAP Impact on Ratios (Lease Capitalization, R&D, Revaluation)
  IFRS vs. US GAAP Impact on Ratios (Lease Capitalization, R&D, Revaluation) (CFA Level 1): Test Your Knowledge: IFRS vs. US GAAP Impact and company's lease accounting policy may affect which. Key definitions, formulas, and exam tips.
• Deferred Revenue in Subscription-Based Models and Its Effect on Ratios
  Deferred Revenue in Subscription-Based Models and Its Effect on Ratios (CFA Level 1): Key Concepts, Definition and Nature of Deferred Revenue, and How Deferred Revenue Arises. Key definitions, formulas, and exam tips.
• Same-Store Sales, Foot Traffic, and Other Metrics in Retail
  Same-Store Sales, Foot Traffic, and Other Metrics in Retail (CFA Level 1): Importance of Same-Store Sales, Calculation and Interpretation, and Benefits and Pitfalls. Key definitions, formulas, and exam tips.