Level 1 CFA® Exam:
Evaluation of Past Performance

Last updated: December 09, 2022

Evaluation of Past Performance – Key CFA Exam Takeaways

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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?

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Level 1 CFA Exam Takeaways: Evaluation of Past Performance

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  1. Evaluation of the past performance of a company is not only about the effect but also about the cause.
  2. The context of performance evaluation includes competition, industry characteristics, strategy & business model, and critical factors.