Learn how financial analysts prepare earnings forecasts and use this information to predict what announced earnings for a company will be.
- As of 2017 there are about 5,000 companies…with shares traded on U.S. stock exchanges.…These companies fall under the jurisdiction…of the Securities and Exchange Commission, the SEC,…and are required to publicly release…financial reports every quarter.…So each year the SEC receives…20,000 financial report filings.…5,000 companies times four reports per year.…These filings are typically preceded…by a public press release of the company's net income.…Now with about 250 business days each year,…that means that the average business day…contains 80 net income press releases.…
20,000 press releases divided by 250 business days.…80 earnings announcements on an average day.…And earnings announcements cluster during certain periods,…such as a few days or a few weeks…right around the end of the quarter.…On those clustering days, there can be several 100…public corporate earnings announcements.…So how long does it take for financial analysts…and sophisticated market investors to sort through…the implications of this daily avalanche…
In this course, join accounting professors Jim and Kay Stice as they help you discover how to leverage the power of numbers to approach businesses problems and make everyday decisions. They explore the power of ratios and percentages, how to monitor and evaluate your budget, how to forecast the timing and amount of a business loan, and much more.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- The power of ratios and percentages
- Growth rates, rule of 72, and extrapolation
- Financial ratios to determine unpaid inventory
- How to convert to percentages
- Variance and the concept of risk
- Numerical planning and everyday decisions
- Creating, monitoring, and evaluating your budget
- Forecasting the timing and amount of a business loan
- The power of compound interest
- Loan payments and interest rates