Course

Corporate finance studies the relationships between people, quantifying resource allocation, value creation, and interactions in financial transactions. It uses mathematical analysis and various economic indicators to evaluate and optimize organizational success.

Most new companies fund their operations through a combination of the owner's personal money (equity) and various loans (liabilities), which together make up the company's assets. Companies must carefully evaluate loan options, considering interest rates and terms, to ensure they can generate enough returns to cover the debt and avoid financial losses.

The balance sheet details a company's financial position, showing assets, liabilities, and owners' equity to ensure financial balance.

An income statement is a financial report that shows a company's revenues, expenses, and profits over a specific period of time, typically a quarter or a year.

Metrics include days sales in receivables, accounts receivables turnover, inventory turnover, and working capital, among others, each providing insights into how well a company collects revenue, manages inventory, and meets short-term obligations.

Measuring capital efficiency with investor analytics, assessing liquidity and financial risk with bank analytics, and focusing on property and long-term debt with asset-management analytics.

Understanding what influences the value of money, Determining present value, and estimating the future value

A bond is a form of financial security under which the issuer owes the holder a debt, and must repay the principal and interest at specified intervals.

A stock is a type of security that represents ownership in a corporation and entitles the owner to a portion of the corporation's assets and earnings. Stocks are also known as shares or equity. When you buy a stock, you become a shareholder of the company.