Financial Statement Analysis Study Resource for CIMA & ACCA Students: CIMA Study Resources

By Commerce Central

Delve into the intricate world of financial statement analysis with this essential guide. Here, readers embark on a journey through the fundamental theories of financial information analysis and reporting, exploring their relevance to stakeholders, their objectives, and the pivotal decisions they make.

 

Navigate the technical terrain of accounting ratio analysis, unravelling the essence of value within the context of a business model. Designed to cultivate a nuanced understanding of accounting ratios across diverse scenarios and decision-making contexts, this publication equips readers with analytical prowess.

 

Learn to craft an analytical strategy tailored to the unique business model of each company under scrutiny and the specific information needs of stakeholders. From calculating key accounting ratios like Return on Capital Employed (ROCE), Asset Turnover Ratio, and Inventory Turnover Ratio, to grasping the nuances of activity, liquidity, and investor ratios, readers gain invaluable insights.

 

Moreover, explore the intricate workings of working capital, from unravelling the working capital cycle to mastering concepts like debtor days, creditor days, and inventory days. 

 

Embark on a journey of financial acumen and strategic insight with this indispensable resource.

• Language: English
• Publisher: Commerce Central
• Release date: Apr 17, 2024
• ISBN: 9798224216420

Book preview

Index

Foreword

The Objective of Financial Statement Analysis

Users of financial information

Investors and Traders

Lenders and Credit Investors

Suppliers and Creditors

Employees

Customers

Government and Regulatory Agencies

Business Model Identification

Industry Standards

Stakeholder Mapping and Analysis

Defining Value

Organisational Value Chain

Ecosystem Value

Reporting on Findings

Financial Statement Analysis

Horizontal Income Statement Common Size Analysis

Vertical Income Statement Common Size Analysis

Horizontal Statement of Financial Position Common Size Analysis

Accounting Ratios

Performance Ratios

Revenue Analysis

Profitability Ratios

Gross Profit Ratio

Operating Profit Ratio

Net Profit Ratio

EBITDA Margin

Activity Ratios

Asset Turnover Ratio

Inventory Turnover Ratio

Liquidity Ratios

Current Ratio

Quick Ratio (Acid Test)

Working Capital Cycle & Ratios

The Working Capital Cycle

Inventory Turnover Days

Debtor Days

Creditor Days

Return on Capital Ratios

Return on Capital Employed

Return on Assets (ROA)

Return on Shareholders Funds

Capital Structure Analysis

Capital Gearing Ratio

Valuation Ratios

Price-to-Earnings Ratio

The Objective of IAS 33: Earning Per Share

Profit Retention Ratio

Cash Retention Ratio

Dividend Ratios

Dividend Yield Ratio

Dividend Payout Ratio

Dividend Coverage Ratio

Book Value Per Share

Cash Flows Ratios

Cash-to-Long-Term Debt Ratio

Total Long-Term Debt to Cash Generated from Operations

Net Cash from Operations to Capital Expenditure

Cash Return on Capital Invested Ratio

Financial Statement Ratio Analysis Example

Foreword

Delve into the intricate world of financial statement analysis with this essential guide. Here, readers embark on a journey through the fundamental theories of financial information analysis and reporting, exploring their relevance to stakeholders, their objectives, and the pivotal decisions they make.

Navigate the technical terrain of accounting ratio analysis, unravelling the essence of value within the context of a business model. Designed to cultivate a nuanced understanding of accounting ratios across diverse scenarios and decision-making contexts, this publication equips