#+title: Section 10 | Lesson 55 - Where to get Information for your Financial Models
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* Links
- [[./../mba-main.org][TOC | Business]]
- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4314666#overview][S10:L55. Where to get Information for your Financial Models]]

* Notes
1. Question financial data
2. CFO's and CEO's are the best salespeople in the world

** Oracle income statement
*** lost money
bc the entire economy was crashing

*** gained money
1. revenue growth increased bc they bought companies
   - sun microsystems
   - bea
   - etc
2. this was not organic growth
3. organic growth is when you aren't buying companies

** tech model
- subscribers or license revenues
- bookings
  - recognize revenue when you ship the product and they pay you
  - but a lot of this hasn't been paid yet.
- operating and gross margin trends

*** tech model bs
- usually low debt if any
- cash rich
- analyze deferred revenue

*** tech model cash flow
- cash flow is not as relevent
  - becomes same as revenue

*** valuation
- in five years is the company going to be more or less relevant
- use revenue, eps and cash flow multiples
- look long term

** non tech
*** valuation
- dcf: discounted cash flow
- model it five years out
- revenue, eps, and cash flow multiples

** growth versus value spectrum
- growth
  - invest in companies that grow quickly

- value
  - general only buy cheap stocks
  - don't really get tech stocks

** info on publicly traded companies
- www.sec.gov
  - 10Q quarterly reports

*** 10-q
1. financial statemetns
   - balance sheet
   - income statement
   - cashflow statement

2. management discussion & analysis (MD&A)
   - explanation of financial performance and trends
   - insights into risks and future expectations

3. market risks
   - details on economic, legal or industry risks

4. legal proceedings
   - updates on lawsuits or government investigations

5. internal controls
   - corporate governance
   - controls over financial reporting

*** 10-K
**** basics
- annual financial report
- comprehensive audited overview

**** sections
1. business overview
   - industry, operations and business model
   - major products, services and markets
   - competitive landscape
2. financial  statements
   - audited
   - balance sheet
     - assets
     - liabilities
     - equity
   - income statement
     - revenue
     - expenses
     - profit/loss
   - cash flow statement
     - operating
     - investing
     - financing cash flows
   - statement of shareholders equity
3. management discussion and analysis (MD&A)
   - management anaylysis of financial performence
   - risks, trends, and future outlook
4. risk factors
   - poetential threats to company
     - economic
     - regulatory
     - competitive
5. legal proceedings
6. corporate governance and executive compensation
   - details for CEO's and top executives
   - board of directors and corporate governance policies
7. market data & shareholder information
   - stock performance
   - number of outstanding shares

** recap
- great quantitative tools
- target price based on estimates in 5 years
- look for trends
- use sec.gov
