Learning Outcome Statements

1. Analysis Tools and Techniques

a. describe tools and techniques used in financial analysis, including their uses and limitations;

2. Common Ratios

b. classify, calculate, and interpret activity, liquidity, solvency, profitability, and valuation ratios;

c. describe relationships among ratios and evaluate a company using ratio analysis;

3. The DuPont System

d. demonstrate the application of DuPont analysis of return on equity and calculate and interpret effects of changes in its components;

4. Ratios Used in Equity Analysis, Credit Analysis, and Segment Analysis

e. calculate and interpret ratios used in equity analysis and credit analysis;

f. explain the requirements for segment reporting and calculate and interpret segment ratios;

5. Model Building and Forecasting

g. describe how ratio analysis and other techniques can be used to model and forecast earnings.