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Analysis of Financial Statements, 3rd Edition

Book Description

The fully update Third Edition of the most trusted book on financial statement analysis

Recent financial events have taught us to take a more critical look at the financial disclosures provides by companies. In the Third Edition of Analysis of Financial Statements, Pamela Peterson-Drake and Frank Fabozzi once again team up to provide a practical guide to understanding and interpreting financial statements. Written to reflect current market conditions, this reliable resource will help analysts and investors use these disclosures to assess a company's financial health and risks.

Throughout Analysis of Financial Statements, Third Edition, the authors demonstrate the nuts and bolts of financial analysis by applying the techniques to actual companies. Along the way, they tackle the changing complexities in the area of financial statement analysis and provide an up-to-date perspective of new acts of legislation and events that have shaped the field.

  • Addresses changes to U.S. and international accounting standards, as well as innovations in the areas of credit risk models and factor models

  • Includes examples, guidance, and an incorporation of information pertaining to recent events in the accounting/analysis community

  • Covers issues of transparency, cash flow, income reporting, and much more

Whether evaluating a company's financial information or figuring valuation for M&A's, analyzing financial statements is essential for both professional investors and corporate finance executives. The Third Edition of Analysis of Financial Statements contains valuable insights that can help you excel at this endeavor.

Table of Contents

  1. Cover
  2. Wiley Global Finance
  3. The Frank J. Fabozzi Series
  4. Title Page
  5. Copyright
  6. Dedication
  7. Preface
  8. About the Authors
  9. Part One: The Basics
    1. Chapter 1: Introduction
      1. WHAT IS FINANCIAL ANALYSIS?
      2. WHERE DO WE FIND THE FINANCIAL INFORMATION?
      3. WHO GETS WHAT TYPE OF INFORMATION AND WHEN?
      4. WHAT DOES SARBANES-OXLEY MEAN TO COMPANIES AND INVESTORS?
      5. WHAT DOES THE DODD-FRANK ACT MEAN FOR COMPANIES AND INVESTORS?
      6. SUMMARY
      7. REVIEW
    2. Chapter 2: Financial Statements
      1. ACCOUNTING PRINCIPLES: WHAT ARE THEY?
      2. WHAT DO THE BASIC FINANCIAL STATEMENTS TELL US?
      3. ACCOUNTING FLEXIBILITY
      4. HOW DOES ACCOUNTING IN THE UNITED STATES DIFFER FROM ACCOUNTING OUTSIDE OF THE UNITED STATES?
      5. SUMMARY
      6. REVIEW
    3. Chapter 3: The Quality of Financial Information
      1. IT'S ALL IN THE TIMING
      2. TOO MANY CHOICES?
      3. SO WHAT'S THEIR BUSINESS?
      4. RESTATEMENTS AND FINANCIAL ANALYSIS
      5. TELL-TALE SIGNS
      6. SUMMARY
      7. REVIEW
  10. Part Two: Analysis of Financial Statements
    1. Chapter 4: Financial Analysis
      1. WHAT ARE FINANCIAL RATIOS AND HOW DO WE USE THEM?
      2. WHAT ARE THE DIFFERENT TYPES OF FINANCIAL RATIOS?
      3. ANALYSIS OF RETURN-ON-INVESTMENT RATIOS
      4. HOW CAN WE USE COMMON-SIZE ANALYSIS TO ANALYZE FINANCIAL STATEMENTS?
      5. INTEGRATED RATIO ANALYSIS
      6. WHAT ARE THE PITFALLS AND PRATFALLS OF FINANCIAL RATIO ANALYSIS?
      7. SUMMARY
      8. REVIEW
    2. Chapter 5: Equity Analysis
      1. EARNINGS
      2. PRICE-EARNINGS RATIO
      3. DIVIDENDS
      4. OTHER FUNDAMENTALS
      5. BOOK-TO-MARKET RATIO
      6. SUMMARY
      7. REVIEW
    3. Chapter 6: Cash Flow Analysis
      1. MEASURES OF CASH FLOW
      2. CASH FLOWS AND THE STATEMENT OF CASH FLOWS
      3. FREE CASH FLOW
      4. THE USEFULNESS OF CASH FLOWS IN FINANCIAL ANALYSIS
      5. SUMMARY
      6. REVIEW
  11. Part Three: Applying Financial Analysis
    1. Chapter 7: Measuring Company Performance
      1. TRADITIONAL PERFORMANCE MEASURES
      2. MEASURES OF VALUE ADDED
      3. SUMMARY
      4. REVIEW
    2. Chapter 8: Corporate Credit Analysis
      1. TYPES OF CREDIT RISK
      2. FACTORS TO CONSIDER IN CORPORATE CREDIT ANALYSIS
      3. SUMMARY
      4. REVIEW
    3. Chapter 9: Analysis of Equity Risk Using Fundamentals Factor Models
      1. MEASURING RISK
      2. ASSET PRICING MODEL
      3. FACTOR MODELS
      4. FUNDAMENTAL FACTOR MODELS
      5. SUMMARY
      6. REVIEW
    4. Chapter 10: The Lessons We Learn
      1. THE LESSONS
      2. THE FUTURE OF FINANCIAL ANALYSIS IN THE POST-CRISIS ERA
      3. REVIEW
  12. Answers to End-of-Chapter Questions
  13. Index
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