Key Point

Tracking capitalization is not complex or esoteric. It may reveal far more about cash flow and internal controls than the current ratio. The concept of capitalization contains two distinct and very different meanings. First is market 1 the equity value of a company, also known as market capitalization or market cap it is computed by multiplying total issued shares of common stock by the current price per share 2 the total debt and equity of a corporation the combination of net worth and...

Yri

The sections and organization of the statement of cash flows is summarized in Figure 1.4. In the beginning of this chapter, the importance of taking a broad view was emphasized. You cannot look at a single financial statement and judge a company's strength on that basis. Instead, you need to look at long-term trends, well designed analytical ratio-based programs, and to develop a series of tests. These quantify capital strength, working capital, internal controls, and profits, among other...

Fundamental Analysis

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