What’s in this chapter:
• What sections of the financial statement commentary to prioritize
• How to derive key figures from company financial statements
• Deriving EBITDA and deciding what to include in adjusted EBITDA
• Free cash flow and interest expense, capital expenditures, and changes in working capital
• What you should focus on from the balance sheet
This chapter shows you how to derive key data used in our analysis from a company’s financial statements. It also discusses other uses of these documents.
A company’s financial statements include more than just key numbers. Material amounts of descriptive information lend considerable insight to the analysis. Whenever possible, read ...