From the course: Financial Accounting Part 2

Financial analysis, cash flow analysis, and valuation

From the course: Financial Accounting Part 2

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Financial analysis, cash flow analysis, and valuation

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- Hi, I'm Jim Stice. I'm a professor of accounting at Brigham Young University. This is my brother, Kay. - I'm also a professor of accounting at Brigham Young University. We are an accounting family. - Absolutely. We love numbers, we love financial statements, and we love using financial reports to gain insights into how companies work. - This course introduces you to the methods of financial ratio analysis that allow you to use a company's financial reports to identify the company's strengths and weaknesses. - Now, in this course, we also address the important topic of cash flow analysis. - Many good businesses have died a premature death because they didn't properly manage their cash flow. We also provide an introduction to business valuation. - [Jim] Business valuation brings together the fields of accounting and finance. - Also, in this course, we introduce two basic valuation approaches, valuation using multiples and the more challenging valuation using discounted cash flow analysis. - [Jim] And in a capstone example, we will use several different models to estimate the value of McDonald's. - Before taking this course, you might consider taking our Financial Accounting I course here in LinkedIn Learning. That course introduces you to the processes and financial statements that are the foundation of financial accounting. - But with that said, we've designed this financial accounting course too to be self-contained, and we carefully explain any accounting terminology that we use. - So, let's go. - Let's go.

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