Corporate Issuers and Financial Statement Analysis

Ready to master two of the most critical topics for the CFA Level 1 exam in one focused guide?

This book is your complete resource for Corporate Issuers and Financial Statement Analysis. It covers two major subjects in a logical flow. First, we explore the world of Corporate Issuers. You will learn all about business structures. We explain different organizational forms. You'll understand corporate features and ownership. We identify investors and other key stakeholders. The book dives deep into corporate governance. You will learn about managing working capital and liquidity. We show how companies make capital investment decisions. You'll see how capital is allocated. We will help you grasp complex capital structures. We also break down various business models. Then, the book transitions to Financial Statement Analysis. It starts with a clear and simple introduction. You will learn to properly analyze an income statement. We teach you to dissect a company's balance sheet. You will master the statement of cash flows. We have dedicated chapters for tough topics. These include inventories and long-term assets. We also cover long-term liabilities, equity, and income taxes. You'll learn to spot high-quality financial reporting. We arm you with essential financial analysis techniques. Finally, we provide a gentle introduction to financial statement modeling to tie it all together.

So, what makes this guide your best choice for success? Many exam prep books are incredibly dense and academic. They can feel overwhelming and disconnected from the real world. We built this book to be different. Our approach is conversational and direct, breaking down complex ideas into simple, easy-to-understand concepts, as if a personal tutor were guiding you. We focus exclusively on these two interrelated topics, creating a seamless learning path between understanding a company's internal decisions and analyzing its external financial reports. Instead of just defining terms, we show you the “why” behind them. You won't just learn what a capital structure is; you'll see exactly how it impacts the numbers you analyze on the financial statements. This integrated method, which links corporate actions to financial outcomes within one cohesive volume, provides a practical, real-world understanding that other, more fragmented materials often fail to deliver. It’s designed to build your confidence and practical skills, not just help you memorize facts.

Disclaimer: This book is an independent publication. It has not been authorized, sponsored, or otherwise approved by the CFA Institute. CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute. The use of these trademarks is for identification purposes only under the nominative fair use doctrine and does not imply any affiliation with or endorsement by the CFA Institute.