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  • Chapter 3 – Financial Statement & Cash Flow_Part 2

    CHAPTER 3: FINANCIAL STATEMENT AND CASH FLOW

    WEEK 4 (Lecture) and (Tutorial)

    SYNOPSIS / OVERVIEW

    Lesson 3 introduces understanding the fundamentals of finance is vital to business education. This introductory unit addresses the importance of understanding ratios for financial statement analysis and analysis of cash flows. The main ratios explained are solvency (or liquidity ratios), financial ratios, profitability ratios, and market value ratios. In addition, student will learn about financial growth, what financial factors determine growth, the importance of maintaining a sustainable growth rate, and how to use financial statement information to manage growth.

    Here are the main topics to be covered in Chapter 3 (Week 4):

    • Ratio

    LEARNING OUTCOMES

    By the end of this lesson, student should be able to know:

    • Explain how to standardize financial statements for comparison purposes.
    • Compute an important financial ratios.
    • Identify the determinants of a firm’s profitability and growth.
    • Understand the problems and pitfalls in financial statement analysis.

    REQUIRED READINGS

    Chapter 4: Financial Statement and Cash Flow

    Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

    Ratio Analysis - Overview, Uses, Categories of Financial Ratios

Chapter 3 – Financial Statement & Cash Flow_Part 1Chapter 4 – Time Value of Money_Part 1