Articles
Free Cash Flow to the Firm and Equity
The discounted cash flow model is the most advocated model for valuing a stock. Under this model, an analyst will estim...
Cash Flow from Investing and Financing Activities
Investing Activities The cash flow from investing activities is the net cash flow provided or used in the investing ...
Cash Flow from Operating Activities
Direct Method In the direct method, the cash flow from operating activities is computed directly as the net sum of a...
Steps to Prepare Statement of Cash Flows
As we learned earlier, we can prepare a statement of cash flows using direct or indirect method. The two methods differ...
Cash Flow Statements: US GAAP Vs. IFRS
With respect to the treatment of activities in cash flow statements, there are some differences in IFRS and US GAAP. ...
Noncash Investing and Financing Activities
Investing and financing activities that do not involve cash are not reported in the cash flow statement since there is ...
Common Size Balance Sheet
In a common size balance sheet, each element of the balance sheet is presented as a percentage of total assets. A commo...
Statement of Changes in Shareholder’s Equity
The balance sheet provides a broad picture of the company’s financial position along with the details about its assets ...
Stockholders' Equity
Shareholders’ Equity is the residual interest in the assets of an entity that remains after deducting liabilities. ...
Liabilities Side of Balance Sheet
The liability side of the balance sheet is presented below: The liability side of the balance sheet tells you ho...
Intangible Assets and Goodwill
Intangible Assets These include copyrights, patents, franchises, etc., that the business uses in its operations to g...
Non-current Assets - Investments and Funds
These are the assets that are not directly used in the operations of the business. This includes investments in debt an...
Asset Side of the Balance Sheet
The asset side of the balance sheet is presented below: Assets are what the company owns, and this section of th...
Balance Sheet in Financial Analysis
The main purpose of the balance sheet statement is to report a company’s financial position on a particular date. ...
Comprehensive Income
Total Comprehensive Income reflects the changes in a company’s equity during the accounting period which does not repre...
Performance Measures of a Company
Two commonly used measures of profitability of a company include Gross Profit Margin and Net Profit Margin. ...
Common Size Income Statement
In a common size income statement each item is expressed as a percentage of revenue. A common-size statement helps in c...
Calculation of Diluted EPS (Convertible Debt)
We have the following data for a company: Net income= $12,000Preferred dividend= $2,000Weighted Average Shares Outst...
Calculation of Diluted EPS (Convertible Preferred Stock)
We have the following data for a company: Net income= $12,000Preferred dividend= $2,000Weighted Average Shares Outst...
Diluted EPS
Companies with complex capital structures are required to present both basic and diluted earnings per share. In comp...
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