Series 79 Function 1.2 part 2 Essential Financial Ratios and Valuation Metrics for Corporate Transactions

Send us Fan Maila comprehensive outline of key financial metrics and ratios utilized in corporate advisory services, including mergers and acquisitions (M&As), restructurings, and equity or debt transactions. It categorizes these critical data points into five main areas:Liquidity: Metrics that measure a company's cash flow and working capital, such as the current ratio, quick ratio (acid test), debt-to-capital, and the cash collection cycle.Profitability: Indicators of a company's ability to generate earnings, including EBITDA, earnings per share (EPS), return on equity (ROE), return on assets (ROA), and various profit margins (gross, operating, and net).Leverage: Ratios that evaluate a company's debt levels relative to its earnings, such as the interest coverage ratio and debt-to-EBITDA.Valuation: Tools used to determine the value of a business or asset, including Enterprise Value (EV), Price-to-Earnings (P/E) multiples, Discounted Cash Flow (DCF), Weighted Average Cost of Capital (WACC), and the Dividend Discount Model (DDM).Asset Turnover: Methods that evaluate how efficiently a company manages its assets, specifically noting inventory valuation methods like LIFO and FIFO.Support the show📚 About the PodcastReal-world finance explained the way exams and real life actually test it. Ideal for the SIE, Series 7, Series 65/66, and anyone who wants to actually understand money—not just memorize buzzwords.⚠️ DisclosureThis podcast is for educational purposes only and is not a recommendation to buy or sell any security. Opinions expressed are solely those of the host.🚀 Go DeeperLive classes, tutoring, practice questions, and bonus content:👉 Website / Classes:  https://series7exam.org 👉 YouTube: https://youtube.com/@Series7exam 👉 Substack:https://substack.com/@series7whisperer?New episodes weekly — subscribe so you don’t miss one.