Topic 4 of 10 • CFA Level 1

Financial Statement Analysis

Financial reporting, analysis, and interpretation

12
Subtopics
53
Learning Outcomes
11-14%
Exam Weight

Topic Overview

Financial Statement Analysis is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 11-14% of the exam. This topic area covers 12 key subtopics that form the foundation of financial statement analysis knowledge required for investment professionals.

Understanding financial statement analysis is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 53 specific learning outcomes that candidates must master for the exam.

Subtopics in Financial Statement Analysis

1

Introduction to Financial Statement Analysis

5 learning outcomes

2

Analyzing Income Statements

5 learning outcomes

3

Analyzing Balance Sheets

5 learning outcomes

4

Analyzing Statements of Cash Flows I

4 learning outcomes

5

Analyzing Statements of Cash Flows II

2 learning outcomes

6

Analysis of Inventories

3 learning outcomes

7

Analysis of Long-Term Assets

3 learning outcomes

8

Topics in Long-Term Liabilities and Equity

3 learning outcomes

9

Analysis of Income Taxes

4 learning outcomes

10

Financial Reporting Quality

8 learning outcomes

11

Financial Analysis Techniques

6 learning outcomes

12

Introduction to Financial Statement Modeling

5 learning outcomes

Study Tips for Financial Statement Analysis

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Financial Statement Analysis?

Practice with our comprehensive question bank featuring questions on all 12 subtopics and 53 learning outcomes.

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Corporate Issuers

Other CFA Level 1 Topics

Ethical and Professional Standards
15-20%
Quantitative Methods
6-9%
Economics
6-9%
Corporate Issuers
6-9%
Equity Investments
11-14%
Fixed Income
11-14%
Derivatives
5-8%
Alternative Investments
7-10%
Portfolio Management
8-12%