AICPA / Financial Statement Analysis

Chapter 1 1-1 Company Valuation 1-1 Why use a valuation technique? 1-2 Who uses valuation techniques? 1-4 Wells Fargo "dividend capitalization" model 1-5 Dividend computation for privately-held corporation 1-7 Review questions 1-9 Chapter 2 2-1 Ratio Analysis: The Effect Ratios 2-1 Effect ratios 2-2 Liquidity 2-3 Inventory to working capital 2-6 Accounts receivables to working capital ratio 2-8 Net sales to working capital (working capital turnover) 2-10 Operating cash flow to current liabilities 2-11 Debt ratios 2-12 Current liabilities to net worth 2-14 Times interest earned 2-15 Net profit to net worth (return on equity) 2-16 Effect ratio summary 2-17 Review questions 2-18 Chapter 3 3-1 Analysis of Profitability Using the DuPont Analysis 3-1 DuPont system 3-2 DuPont system 3-4 Total DuPont system 3-6 Group exercise - Part A 3-7 Group exercise - Part B 3-8 EBITDA analysis 3-9 Earnings quality 3-10 Review questions 3-14 Chapter 4 4-1 Analysis of Financial Statements Using Causal Ratios 4-1 Causal ratios 4-2 Fixed assets to net worth 4-3 How fixed assets affect profit 4-5 Ratios that could be changed by the fixed assets to net worth ratio 4-6 Correction procedures 4-7 Collection period 4-8 Collection period: Example 4-9 Ratios that could be changed by the collection period 4-11 Correction procedures 4-12 Net sales to inventory (inventory turnover) 4-14 Net sales to inventory: Example 4-15 Ratios that could be changed by net sales to inventory 4-17 Correction procedures 4-18 Net sales to net worth 4-19 Trading ratio: Example 4-20 Trading ratio: Example 4-22 Ratios that could be changed by the trading ratio 4-23 Overtrading characteristics 4-24 Correction procedures 4-26 The profit margin 4-27 The profit margin: Example 4-28 Correction procedures 4-29 Miscellaneous assets to net worth 4-30 Correction procedures 4-31 Causal ratio summary 4-32 Review questions 4-33 Chapter 5 5-1 How to Conduct a Financial Statement Analysis 5-1 How to conduct an analysis of financial

Wallace N. Davidson, III, Ph.D., CMA, is a professor at Southern Illinois University, Carbondale with 25 years experience in corporate finance. He previously served as a financial analyst in the utility industry. Dr. Davidson is an accomplished author of several continuing education seminars for the AICPA, including the popular "Financial Statement Analysis: Basis for Management Advice." Twice recognized as an AICPA Outstanding Discussion Leader, Dr. Davidson speaks nationally to business organizations and state societies.