|
Company Analysis
Note on Cyclicality
How economic and industry cycles affect a company’s operating performance
• The business cycle
• Capital markets cycles
• Industry cycles
• Cyclicality and risk
Note on Competition
How competition affects a company’s operating performance and business strategy
• Industry competitive structure
• Company competitive position
• Competition and risk
Note on the Industry Life Cycle
How to use industry growth trends to analyze a company’s business and finances
• The phases of the industry life cycle
• The industry life cycle in financial analysis
Note on Capital Structure and Debt Capacity
How to analyze a company’s financial condition
• Financial strategy
• Target capital structure
• Debt capacity
• Financial condition and risk
Note on Liquidity
How to analyze a company’s ability to meet financial demands
• Uses of liquidity
• Sources of liquidity
• Access to liquidity
• Measures of liquidity
• Financial flexibility
Financial Analysis
Note on Cash Flow Analysis
How to evaluate a company’s sources and uses of cash
• The cash flow statement
• Free cash flow
• Internal cash flow
• Adjustments to cash flow
• EBITDA
• Cash available to repay debt
Note on Ratio Analysis
How to use profitability, leverage, and coverage ratios in financial analysis
• Uses and limitations of ratios
• Adjustments to ratios
• Interpreting ratios
• Peer group comparisons
Note on Aggressive Financial Reporting
Accounting abuses and how they affect financial risk and debt structuring
• Aggressive accounting practices
• Early warning signs
• Liquidity risk and flexibility risk
• Funding, collateral, and position protections
Note on Credit Ratings
How ratings measure credit risk and value
• Meaning and uses
• Default, loss, and notching
• Assigning a credit rating
• Credit ratings and market values
|