Income Statement
The first line item of the income statement
What is revenue?
The core equation to remember when it comes to the balance sheet
Assets = Liabilities + Shareholders Equity
OR
Assets - Liabilities = SE
The first line item of the income statement
What is Net Income to Common?
The cost of acquiring a company
If you could only use one statement to value a company, this would be it.
Cash Flow Statement
Revenue minus COGS equals this
What is Gross Profit?
The three sections of the cash flow statement
What are Operating, Investing, and Financing?
What is Non-controlling interests?
When you own >50% of a company (controlling stake), you consolidate 100% of its financial onto your financial statements. But equity value only accounts for the piece shareholders own so need to add non-controlling interest to reflect 100% of the company
The two main methods of accounting: cash and this
What is Accrual?
This intangible asset arises when a company is acquired for more than its net assets
What is Goodwill?
Purchasing equipment appears in this section
What is Investing Activities?
What are the 3 ways to calculate Equity Value?
Precedent Transactions Analysis
Comparable Companies analysis
Discounted Cash Flow Analysis
This non-cash expense reduces the value of a tangible asset over time
What is Depreciation?
These are listed in order of liquidity on the balance sheet
What are Assets?
Outstanding shares * Current Share Price
FIFO and LIFO are methods for valuing this
What is Inventory?
What is treasury stock?
Stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market?
Issuing bonds or paying dividends appears in this section
What is Financing Activities?