Management and Organizational Studies 2310A/B Lecture Notes - Lecture 3: Peg Ratio, Valuation Using Multiples, Shares Outstanding

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Bruce Morrison

Document Summary

Lo1 the sources and uses of a firm"s cash flows. Lo2 how to standardize financial statements for comparison purposes. Lo3 how to compute and, more importantly, interpret some common ratios. Lo5 some of the problems and pitfalls in financial statement analysis. S3. 23: table 3. 8 common financial ratios (2 pages) Web address www. suncor. com www. statcan. gc. ca www. dnb. ca www. transcanada. com www. standardandpoors. com www. dbrs. com www. shaw. ca/en-ca/investorrelations/annualreports. Standardized financial statements: cash flow and financial statements: a closer look, ratio analysis, using financial statement information. 3. 1 cash flow and financial statements: a closer look. The balance sheet is a snapshot of the firm"s assets and liabilities at a point in time. Balance sheet identity: assets = liabilities + shareholder"s equity. Income statement is like a video of operations over a period of time. Accounting"s realization principle for revenue, the matching principle for costs, and their incongruence with cash flows. Sources and uses of cash 3. 1: sources and uses of cash, activities that bring in cash are sources.