- CFA Exams
- Dec. 2020 Level 1
- Study Session 7. Financial Reporting and Analysis II
- Reading 24. Financial Analysis Techniques
Reading 24. Financial Analysis Techniques
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Learning Outcome Statements
|Reading 24. Financial Analysis Techniques|
|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.