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  1. CFA Exam: Dec. 2019 Level I
  2. Study Session 7. Financial Reporting and Analysis: Income Statements, Balance Sheets, and Cash Flow Statements
  3. Reading 26. Financial Analysis Techniques

Learning Outcome Statements

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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.