Level 1 CFA® Exam:
Evaluation of Past Performance
Evaluation of Past Performance – Key CFA Exam Takeawaysstar content check off when done
Key takeaways for evaluation of the past performance of companies:
- Evaluation of the past performance of a company is not only about the effect but also about the cause. So, we are interested not only in raw facts and data (e.g. net income = USD 146 million) but also in what caused them.
- What are the company’s strategy and business model? And how did the company’s strategy and business model impact the output?
- What are the trends and changes to financial data and what caused them?
- How were the results achieved compared to other companies in the industry?
- What are the critical aspects that influence growth?
Level 1 CFA Exam Takeaways: Evaluation of Past Performancestar content check off when done
- Evaluation of the past performance of a company is not only about the effect but also about the cause.
- The context of performance evaluation includes competition, industry characteristics, strategy & business model, and critical factors.