Class |
Topic |
1 |
- The purpose of financial statement analysis: Valuation, credit risk assessment, and performance evaluation
|
2 |
- Introduction to deriving unlevered free cash flows
- Unlevered net income or net operating profit after tax
- Unlevered net assets or net operating assets
|
3 |
- Deriving unlevered net income
- Distinguishing between operating and financial items
- Drivers of unlevered net income: Size, growth, and NOPAT margin
|
4 |
- Deriving net operating assets
- Financial assets versus non-financial assets
- Financial liabilities versus non-financial liabilities
|
5 |
- Drivers of net operating assets: Revenue-related metrics
- Days of receivables, bad debts, days of deferred revenues
|
6 |
- Drivers of net operating assets: Expense-related metrics
- Days of prepayments, days of inventories, PP&E turnover, days of payable
|
7 |
- Distinguishing between operating working capital and fixed capital
- Fixed versus variable items
- Seasonal versus cyclical items
|
8 |
- Financial assets and financial liabilities
- Distinguishing between solvency and liquidity
|
9 |
- Leverage and liquidity ratios
- Leverage: Debt/EBITDA, Debt/EBIT, Debt/FFO,
- Liquidity: Financial assets/Sales, (Financial assets + Undrawn revolver)/Sales
|
10 |
- Effect of leverage and liquidity: ROIC versus ROE
- How leverage amplifies changes in ROE vis-a-vis changes in ROIC
- How liquidity dampens changes in ROE vis-a-vis changes in ROIC
|