Page 93 - CFA Lecture Day 8 Slides

Session Unit 7:
27. Financial Analysis Techniques

LOS 27.g: Describe how ratio analysis and other techniques can be used to model and

forecast earnings. P.166

• COGS % from a common-size income statement can be used in constructing a pro

forma income statement for the next period based on the estimate of sales.\
• Three methods of examining the variability of financial outcomes around point

estimates are:

• sensitivity analysis,

• scenario analysis, and tanties
• simulation.