Contents

1 WHAT IS CORPORATE FINANCE?

1.1 THE FINANCIAL MANAGER IS FIRST AND FOREMOST A SALESMAN

1.2 … OF FINANCIAL SECURITIES

1.3 … VALUED CONTINUOUSLY BY THE FINANCIAL MARKETS

1.4 MOST IMPORTANTLY, HE IS A NEGOTIATOR

1.5 … WHO NEVER FORGETS TO DO AN OCCASIONAL REALITY CHECK!

1.6 … HE IS ALSO NOW A RISK MANAGER

Section I Financial analysis

Part One Fundamental concepts in financial analysis

2 CASH FLOW

2.1 OPERATING AND INVESTMENT CYCLES

2.2 FINANCIAL RESOURCES

3 EARNINGS

3.1 ADDITIONS TO WEALTH AND DEDUCTIONS FROM WEALTH

3.2 DIFFERENT INCOME STATEMENT FORMATS

4 CAPITAL EMPLOYED AND INVESTED CAPITAL

4.1 THE BALANCE SHEET: DEFINITIONS AND CONCEPTS

4.2 A CAPITAL-EMPLOYED ANALYSIS OF THE BALANCE SHEET

4.3 A SOLVENCY-AND-LIQUIDITY ANALYSIS OF THE BALANCE SHEET

4.4 A DETAILED EXAMPLE OF A CAPITAL-EMPLOYED BALANCE SHEET

5 WALKING THROUGH FROM EARNINGS TO CASH FLOW

5.1 ANALYSIS OF EARNINGS FROM A CASH FLOW PERSPECTIVE

5.2 CASH FLOW STATEMENT

6 GETTING TO GRIPS WITH CONSOLIDATED ACCOUNTS

6.1 CONSOLIDATION METHODS

6.2 CONSOLIDATION-RELATED ISSUES

6.3 TECHNICAL ASPECTS OF CONSOLIDATION

7 HOW TO COPE WITH THE MOST COMPLEX POINTS IN FINANCIAL ACCOUNTS

7.1 ACCRUALS

7.2 CONSTRUCTION CONTRACTS

7.3 CONVERTIBLE BONDS AND LOANS

7.4 CURRENCY TRANSLATION ADJUSTMENTS

7.5 DEFERRED TAX ASSETS AND LIABILITIES

7.6 DILUTION PROFIT AND LOSSES

7.7 EXCHANGEABLE BONDS

7.8 GOODWILL

7.9 IMPAIRMENT LOSSES

7.10 INTANGIBLE FIXED ASSETS

7.11 INVENTORIES

7.12 LEASES

7.13 MANDATORY CONVERTIBLE BONDS ...

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