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What Is Financial Analysis?

• How It Works

Corporate Financial Analysis

Investment financial analysis, types of financial analysis, horizontal vs. vertical analysis, the bottom line.

• Corporate Finance
• Financial statements: Balance, income, cash flow, and equity

Financial Analysis: Definition, Importance, Types, and Examples

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Key Takeaways

• If conducted internally, financial analysis can help fund managers make future business decisions or review historical trends for past successes.
• If conducted externally, financial analysis can help investors choose the best possible investment opportunities.
• Fundamental analysis and technical analysis are the two main types of financial analysis.
• Fundamental analysis uses ratios and financial statement data to determine the intrinsic value of a security.
• Technical analysis assumes a security's value is already determined by its price, and it focuses instead on trends in value over time.

Investopedia / Nez Riaz

Understanding Financial Analysis

Financial analysis is used to evaluate economic trends, set financial policy, build long-term plans for business activity, and identify projects or companies for investment.

This is done through the synthesis of financial numbers and data. A financial analyst will thoroughly examine a company's financial statements—the income statement, balance sheet, and cash flow statement. Financial analysis can be conducted in both corporate finance and investment finance settings.

One of the most common ways to analyze financial data is to calculate ratios from the data in the financial statements to compare against those of other companies or against the company's own historical performance.

For example, return on assets (ROA) is a common ratio used to determine how efficient a company is at using its assets and as a measure of profitability. This ratio could be calculated for several companies in the same industry and compared to one another as part of a larger analysis.

There is no single best financial analytic ratio or calculation. Most often, analysts use a combination of data to arrive at their conclusions.

In corporate finance, the analysis is conducted internally by the accounting department and shared with management in order to improve business decision-making. This type of internal analysis may include ratios such as net present value (NPV) and internal rate of return (IRR) to find projects worth executing.

Many companies extend credit to their customers. As a result, the cash receipt from sales may be delayed for a period of time. For companies with large receivable balances, it is useful to track days sales outstanding (DSO), which helps the company identify the length of time it takes to turn a credit sale into cash. The average collection period is an important aspect of a company's overall cash conversion cycle .

A key area of corporate financial analysis involves extrapolating a company's past performance, such as net earnings or profit margin, into an estimate of the company's future performance. This type of historical trend analysis is beneficial to identify seasonal trends.

For example, retailers may see a drastic upswing in sales in the few months leading up to Christmas. This allows the business to forecast budgets and make decisions, such as necessary minimum inventory levels, based on past trends.

In investment finance, an analyst external to the company conducts an analysis for investment purposes. Analysts can either conduct a top-down or bottom-up investment approach.

A top-down approach first looks for macroeconomic opportunities, such as high-performing sectors, and then drills down to find the best companies within that sector. From this point, they further analyze the stocks of specific companies to choose potentially successful ones as investments by looking last at a particular company's fundamentals.

A bottom-up approach, on the other hand, looks at a specific company and conducts a similar ratio analysis to the ones used in corporate financial analysis, looking at past performance and expected future performance as investment indicators.

Bottom-up investing forces investors to consider microeconomic factors first and foremost. These factors include a company's overall financial health, analysis of financial statements, the products and services offered, supply and demand, and other individual indicators of corporate performance over time.

Financial analysis is only useful as a comparative tool. Calculating a single instance of data is usually worthless; comparing that data against prior periods, other general ledger accounts, or competitor financial information yields useful information.

There are two types of financial analysis as it relates to equity investments: fundamental analysis and technical analysis.

Fundamental Analysis

Fundamental analysis uses ratios gathered from data within the financial statements, such as a company's earnings per share (EPS), in order to determine the business's value.

Using ratio analysis in addition to a thorough review of economic and financial situations surrounding the company, the analyst is able to arrive at an intrinsic value for the security. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.

Technical Analysis

Technical analysis uses statistical trends gathered from trading activity, such as moving averages (MA).

Essentially, technical analysis assumes that a security’s price already reflects all publicly available information and instead focuses on the statistical analysis of price movements. Technical analysis attempts to predict market movements by looking for patterns and trends in stock prices and volumes rather than analyzing a security’s fundamental attributes.

When reviewing a company's financial statements, two common types of financial analysis are horizontal analysis and vertical analysis . Both use the same set of data, though each analytical approach is different.

Horizontal analysis entails selecting several years of comparable financial data. One year is selected as the baseline, often the oldest. Then, each account for each subsequent year is compared to this baseline, creating a percentage that easily identifies which accounts are growing (hopefully revenue) and which accounts are shrinking (hopefully expenses).

Vertical analysis entails choosing a specific line item benchmark, and then seeing how every other component on a financial statement compares to that benchmark.

Most often, net sales are used as the benchmark. A company would then compare the cost of goods sold, gross profit, operating profit, or net income as a percentage of this benchmark. Companies can then track how the percentage changes over time.

Examples of Financial Analysis

In Q1 2024, Amazon.com reported a net income of $10.4 billion. This was a substantial increase from one year ago when the company reported a net income of $3.2 billion in Q1 2023.

Analysts can use the information above to perform corporate financial analysis. For example, consider Amazon's operating profit margins below, which can be calculated by dividing operating income by net sales.

• 2024: $15,307 / $143,313 = 10.7%
• 2023: $4,774 / $127,358 = 3.7%

From Q1 2023 to Q1 2024, the company experienced an increase in operating margin, allowing for financial analysis to reveal that the company earned more operating income for every dollar of sales.

Why Is Financial Analysis Useful?

The financial analysis aims to analyze whether an entity is stable, liquid, solvent, or profitable enough to warrant a monetary investment. It is used to evaluate economic trends, set financial policies, build long-term plans for business activity, and identify projects or companies for investment.

How Is Financial Analysis Done?

Financial analysis can be conducted in both corporate finance and investment finance settings. A financial analyst will thoroughly examine a company's financial statements—the income statement, balance sheet, and cash flow statement.

One of the most common ways to analyze financial data is to calculate ratios from the data in the financial statements to compare against those of other companies or against the company's own historical performance. A key area of corporate financial analysis involves extrapolating a company's past performance, such as net earnings or profit margin, into an estimate of the company's future performance.

What Techniques Are Used in Conducting Financial Analysis?

Analysts can use vertical analysis to compare each component of a financial statement as a percentage of a baseline (such as each component as a percentage of total sales). Alternatively, analysts can perform horizontal analysis by comparing one baseline year's financial results to other years.

Many financial analysis techniques involve analyzing growth rates including regression analysis, year-over-year growth, top-down analysis, such as market share percentage, or bottom-up analysis, such as revenue driver analysis .

Lastly, financial analysis often entails the use of financial metrics and ratios. These techniques include quotients relating to the liquidity, solvency, profitability, or efficiency (turnover of resources) of a company.

What Is Fundamental Analysis?

Fundamental analysis uses ratios gathered from data within the financial statements, such as a company's earnings per share (EPS), in order to determine the business's value. Using ratio analysis in addition to a thorough review of economic and financial situations surrounding the company, the analyst is able to arrive at an intrinsic value for the security. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.

What Is Technical Analysis?

Technical analysis uses statistical trends gathered from market activity, such as moving averages (MA). Essentially, technical analysis assumes that a security’s price already reflects all publicly available information and instead focuses on the statistical analysis of price movements. Technical analysis attempts to understand the market sentiment behind price trends by looking for patterns and trends rather than analyzing a security’s fundamental attributes.

Financial analysis is a cornerstone of making smarter, more strategic decisions based on the underlying financial data of a company.

Whether corporate, investment, or technical analysis, analysts use data to explore trends, understand growth, seek areas of risk, and support decision-making. Financial analysis may include investigating financial statement changes, calculating financial ratios, or exploring operating variances.

U.S. Securities and Exchange Commission. " Amazon.com Form 10-Q for the Quarter Ended March, 31, 2024 ," Page 4.

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Guide to Financial Statement Analysis

1. income statement analysis, 2. balance sheet and leverage ratios, 3. cash flow statement analysis, 4. rates of return and profitability analysis, more financial statement analysis, analysis of financial statements.

Guide to analyzing financial statements for financial analysts

One of the main tasks of an analyst is to perform an extensive analysis of  financial statements . In this free guide, we will break down the most important types and techniques of financial statement analysis.

This guide is designed to be useful for both beginners and advanced finance professionals, with the main topics covering: (1) the income statement, (2) the balance sheet, (3) the cash flow statement, and (4) rates of return.

Most analysts start their financial statement analysis with the  income statement . Intuitively, this is usually the first thing we think about with a business… we often ask questions such as, “How much revenue does it have?” “Is it profitable?” and “What are the margins like?”

In order to answer these questions, and much more, we will dive into the income statement to get started.

There are two main types of analysis we will perform: vertical analysis and horizontal analysis.

• Vertical Analysis

With this method of analysis, we will look up and down the income statement (hence, “vertical” analysis) to see how every line item compares to revenue, as a percentage.

For example, in the income statement shown below, we have the total dollar amounts and the percentages, which make up the vertical analysis.

As you see in the above example, we do a thorough analysis of the income statement by seeing each line item as a proportion of  revenue .

The key metrics we look at are:

• Cost of Goods Sold  (COGS) as a percent of revenue
• Gross profit  as a percent of revenue
• Depreciation  as a percent of revenue
• Selling General & Administrative ( SG&A ) as a percent of revenue
• Interest  as a percent of revenue
• Earnings Before Tax (EBT) as a percent of revenue
• Tax as a percent of revenue
• Net earnings  as a percent of revenue

To learn how to perform this analysis step-by-step, please check out our  Financial   Analysis Fundamentals Course .

Key Highlights

• One of the main tasks of a financial analyst is to perform an extensive analysis of a company’s financial statements. This usually begins with the income statement but also includes the balance sheet and cash flow statement.
• The main goal of financial analysis is to measure a company’s financial performance over time and against its peers.
• This analysis can then be used to forecast a company’s financial statements into the future.

Horizontal Analysis

Now it’s time to look at a different way to evaluate the income statement. With horizontal analysis, we look at the  year-over-year  (YoY) change in each line item.

In order to perform this exercise, you need to take the value in Period N and divide it by the value in Period N-1 and then subtract 1 from that number to get the percent change.

For the below example, revenue in Year 3 was $55,749, and in Year 2, it was $53,494. The YoY change in revenue is equal to $55,749 / $53,494 minus one, which equals 4.2%.

To see exactly how to perform this horizontal analysis of financial statements, please enroll in our Financial Analysis Fundamentals Course now!

Let’s move on to the  balance sheet . In this section of financial statement analysis, we will evaluate the operational efficiency of the business. We will take several items on the income statement and compare them to accounts on the balance sheet.

The balance sheet metrics can be divided into several categories, including liquidity, leverage, and operational efficiency.

The main liquidity ratios for a business are:

• Quick ratio
• Current ratio
• Net working capital

The main leverage ratios are:

• Debt to equity
• Debt to capital
• Debt to EBITDA
• Interest coverage
• Fixed charge coverage ratio

The main operating efficiency ratios are:

• Inventory turnover
• Accounts receivable days
• Accounts payable days
• Total asset turnover
• Net asset turnover

Using the above financial ratios, we can determine how efficiently a company is generating revenue and how quickly it’s selling inventory.

Using the financial ratios derived from the balance sheet and comparing them historically versus industry averages or competitors will help you assess the solvency and leverage of a business.

In our course on Analysis   of Financial Statements , we explore all the above metrics and ratios in great detail.

With the income statement and balance sheet under our belt, let’s look at the  cash flow statement  and all the insights it tells us about the business.

The cash flow statement will help us understand the inflows and outflows of cash over the time period we’re looking at.

Cash flow statement overview

The cash flow statement, or statement of cash flow, consists of three components:

• Cash from operations
• Cash used in investing
• Cash from financing

Each of these three sections tells us a unique and important part of the company’s sources and uses of cash over a specific time period.

Many investors consider the cash flow statement the most important indicator of a company’s performance.

Today, investors quickly flip to this section to see if the company is actually making money or not and what its funding requirements are.

It’s important to understand how different ratios can be used to properly assess the operation of an organization from a cash management standpoint.

Below is an example of the cash flow statement and its three main components.  Linking the 3 statements  together in Excel is the building block of financial modeling. To learn more, please see our  online courses  to learn the process step by step.

In this part of our analysis of financial statements, we unlock the drivers of financial performance. By using a “pyramid” of ratios, we are able to demonstrate how you can determine the profitability, efficiency, and leverage drivers for any business.

This is the most advanced section of our financial analysis course, and we recommend that you watch a demonstration of how professionals perform this analysis.

The course includes a hands-on case study and  Excel templates  that can be used to calculate individual ratios and a pyramid of ratios from any set of financial statements.

The key insights to be derived from the pyramid of ratios include:

• Return on equity ratio  (ROE)
• Profitability, efficiency and leverage ratios
• Primary, secondary and tertiary ratios
• Dupont analysis

By constructing the pyramid of ratios, you will gain an extremely solid understanding of the business and its financial statements.

Enroll in our financial analysis course to get started now!

We hope this guide on the analysis of financial statements has been a valuable resource for you. If you’d like to keep learning with free CFI resources, we highly recommend these additional guides to improve your financial statement analysis:

• How to Link the 3 Financial Statements
• Aggregation
• Bottom-Up Forecasting
• Interactive Career Map
• See all accounting resources
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Download Financial Statement Analysis Notes, PDF | MCOM (2024)

• Post last modified: 11 January 2023
• Reading time: 9 mins read
• Post category: Uncategorized

Download Financial Statement Analysis Notes, PDF, Books, Syllabus for MCOM (2024) . We provide complete financial statement analysis pdf. Financial Statement Analysis study material includes financial statement analysis notes, book, courses, case study, syllabus, question paper, MCQ, questions and answers and available in financial statement analysis pdf form.

Financial Statement Analysis subject is included in MCOM so students are able to download financial statement analysis notes for MCOM 3rd year and financial statement analysis notes for MCOM 5th semester.

Table of Content

• 1 Financial Statement Analysis Syllabus
• 2 Financial Statement Analysis PDF
• 3 Financial Statement Analysis Notes
• 4 Financial Statement Analysis Questions and Answers
• 5 Financial Statement Analysis Question Paper
• 6 Financial Statement Analysis Books

Financial Statement Analysis Notes can be downloaded in financial statement analysis pdf from the below article.

Financial Statement Analysis Syllabus

A detailed financial statement analysis syllabus as prescribed by various Universities and colleges in India are as under. You can download the syllabus in financial statement analysis pdf form.

• Basics of Balance Sheet and Profit & Loss Account statement.
• Analysis of Financial Statements through Trend Analysis, Common Size Statements.
• Introduction to Funds Flow Statement, Calculating Funds from Operation, Analysis of Funds flow Statement, Importance of Funds Flow Analysis.
• Introduction to Cash Flow Statement, Calculating Operation / Financing and Investing Cash Flows, Analysis of Cash flow Statement, Importance of Cash Flow Analysis.
• Introduction to Ratio Analysis, Importance of Ratio Analysis, Understanding Liquidity / Leverage & Coverage / Turnover / Expense and Profitability ratios, using ratios to analyse the financial performance of a company, Introduction to DuPont Analysis.
• Understanding Annual Report of a Company; Director’s Report, Management Discussion and Analysis, Notes to Account.
• Basic computation of Free Cash Flows for Equity.

Financial Statement Analysis PDF

Financial Statement Analysis Notes

Financial statements are plain statements based on historical records, facts and figures. They are uncompromising in their objectives, nature and truthfulness. They reflect a judicious combination of recorded facts, accounting principles, concepts and conventions, personal judgements and sometimes estimates.

Financial statements consist of ‘Revenue Account’ and ‘Balance Sheet’.

Financial Statement Analysis Questions and Answers

If you have already studied the financial statement analysis and services notes, then it’s time to move ahead and go through previous year financial statement analysis question papers.

Financial Statement Analysis Question Paper

If you have already studied the financial statement analysis and services notes, then it’s time to move ahead and go through previous year financial statement analysis question paper.

It will help you to understand the question paper pattern and type of financial statement analysis question and answer asked in MCOM 3rd year financial statement analysis exam. You can download the syllabus in financial statement analysis pdf form.

Financial Statement Analysis Books

Below is the list of financial statement analysis books recommended by the top university in India.

• Financial Management – Prasanna Chandra.
• Financial Management – I.M. Pandey.
• Financial Management – Khan & Jain.
• Corporate Finance – Brealey & Mayers.
• Techniques of Financial Analysis – Erich A. Helfert (Tata McGraw Hill).
• Understanding Financial Statements – Interpretation and Analysis – A. A. Gopalkrishnan.

In the above article, a student can download financial statement analysis notes for MCOM 3rd year and financial statement analysis notes for MCOM 6th semester. Financial Statement Analysis study material includes financial statement analysis notes, financial statement analysis books, financial statement analysis syllabus, financial statement analysis question paper, financial statement analysis case study, financial statement analysis questions and answers, financial statement analysis courses in financial statement analysis pdf form.

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From crash to clarity: dissecting crowdstrike’s root cause analysis.

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On July 19, 2024, a CrowdStrike update triggered a massive IT outage, bringing modern systems ... [+] worldwide to a standstill

Three weeks after a massive IT outage brought the world to its knees , CrowdStrike has just unveiled a detailed Root Cause Analysis report. The July 19 systems crash left an indelible mark, causing widespread chaos : flights were canceled, surgeries postponed, cable television news interrupted, and even coffee shops were unable to process credit card transactions, requiring people to use cash. This incident has ignited a firestorm of scrutiny and debate across the tech industry, revealing the fragile underpinnings of our digital age and the daunting challenges of software deployment and system reliability.

What Is A Root Cause Analysis?

Root Cause Analysis is the detective work of the IT world . This methodical approach is commonly used in the industry to dig deep into the underlying causes of faults or problems. By breaking down every component and process involved, RCA aims to pinpoint the root causes instead of merely addressing the symptoms. This critical process ensures that similar incidents do not occur in the future and helps implement effective corrective measures.

Dissecting The RCA: What Went Wrong?

Several critical factors contributed to the Falcon EDR sensor crash, according to CrowdStrike's RCA report . Key issues identified include:

• Mismatch Between Inputs: A mismatch between inputs validated by a content validator and those provided to a content interpreter created a vulnerability that went undetected during initial testing phases. This discrepancy was the first domino to fall, leading to a cascade of failures.
• Out-of-Bounds Read Issue: An out-of-bounds read issue in the content interpreter was another significant flaw. This technical glitch resulted in memory read errors that triggered the global system crashes.
• Absence of Specific Testing: The report highlighted the lack of a specific test for non-wildcard matching criteria in the 21st field as a critical oversight. CrowdStrike has since pledged to collaborate with Microsoft to ensure secure and reliable access to the Windows kernel.

The issue traces back to February, when CrowdStrike introduced a new template type designed to detect novel attack techniques leveraging Windows' interprocess communication mechanisms. This template and content validator defined 21 input parameter fields, yet the content interpreter—a critical component—was only equipped to handle 20 fields.

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On July 19, CrowdStrike deployed additional template instances for Windows’ interprocess communication mechanisms, with one introducing criteria for matching a 21st parameter. This discrepancy triggered a memory read error, leading to widespread crashes.

Moving Forward: CrowdStrike's Commitments

In response to this debacle, CrowdStrike has announced several actions in its RCA to prevent future occurrences:

• Update Test Procedures: The company has upgraded tests for template type development and implemented automated tests for all existing template types, aiming to catch discrepancies early.
• Enhanced Deployment Checks: Additional deployment layers and acceptance checks have been added to the content configuration system, ensuring templates pass successive deployment rings before full rollout.
• Improved Customer Control: New capabilities now allow customers greater control over the deployment of Rapid Response Content updates, with more functionalities planned to empower users.
• Preventing Channel 291 Issues: Validation for input field numbers has been implemented to prevent similar issues from arising in the future.

CrowdStrike CEO George Kurtz also publicly apologized to customers. He emphasized the company’s dedication to regaining customer trust and confidence, stressing that customer protection remains their top priority.

RCA Misses The Elephant In The Room

While CrowdStrike's RCA provides a comprehensive breakdown of the technical flaws, it seems to miss the broader issue: process failure. The report's focus remains heavily on the technical defect rather than the underlying procedural gaps, appearing to shift attention toward technical glitches while sidelining executive and managerial accountability.

The error in question—a mismatch in input fields—is a mundane technical bug. The pressing concern is why such a bug went undetected for so long. The RCA reveals substantial gaps in automated testing processes, which should have caught this discrepancy long before deployment.

Moreover, the RCA does not address clearly why the decision to push the update to all users simultaneously was a significant oversight. The update should have only been pushed to a small subset, as is best practice. Staggered deployments and more rigorous testing could have mitigated the impact of such an error.

Litigation And Brand Impact

The fallout from this incident extends beyond technical fixes. Investors have already filed lawsuits against CrowdStrike, citing a 32% drop in share price over 12 days. Delta Airlines has also threatened to file a lawsuit . The RCA’s revelations may further fuel other litigation, reflecting the significant brand and financial impact of the outage.

The question now facing CrowdStrike and its partners is one of recovery and accountability. While mistakes happen, the handling of this incident, including the RCA, falls short of industry best practices. Customers and partners are rightfully questioning where the penalties lie and how such an oversight can go unpunished.

The Critical Importance Of Process

This incident serves as a stark reminder of the critical importance of thorough testing, cautious deployment, and executive accountability . As the industry reflects on these events, it underscores the need for robust systems and processes that prioritize reliability and customer trust above all else.

In the end, CrowdStrike's crisis is a wake-up call for the entire tech industry, urging a renewed focus on resilience, transparency, and the ever-important human element in our increasingly automated world. As companies navigate this new landscape, the lessons from this outage should serve as a guiding light to prevent future mishaps and build a more reliable digital future that we can all safely rely upon.

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Financial Analysis of Coca Cola Company

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Replacing tobacco with hemp in the beqaa is financially rewarding for farmers and government in lebanon.

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1.1. the purpose of the study, 1.2. reasons to replace tobacco with hemp, 2. materials and methods, 2.1. methodology.

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• Determining the respective costs of tobacco and hemp, encompassing the estimation of total costs and financial savings.
• Highlighting the direct, quantifiable, and tangible benefits arising from both alternatives.
• Based on the analysis, we selected hemp as the more economically advantageous product.

2.2. Assumptions

2.3. limitations, 3. understanding cannabinoids, 3.1. why hemp is important, 3.1.1. use of hemp and cbd oil, 3.1.2. the market, 3.1.3. trends and market dynamics, 3.2. the major driver: legalization and regulatory changes, 3.2.1. challenges, the concentration of generated wealth in big pharma, cost of cbd challenge, 3.2.2. opportunities, policy amendments to address past failures, the green rush of investors, 3.3. key players in the international market, establishing local and regional supply chains, 3.4. the economic crisis and the flourishing drug production in lebanon, 3.5. the legal framework for cannabis in lebanon, key aspects of law no. 178.

• Defines the cannabis plant and its derivatives, including the psychoactive THC and non-narcotic CBD.
• Establishes the regulatory authority, its structure, and its roles, including the appointment of a committee to assess licensing compliance.
• Charged with implementing and enforcing the law, determining cultivation areas, and setting substance levels.
• Tasks include developing a national strategy for cannabis, advising sectors, granting licenses, and preventing monopolization.
• The authority is also responsible for creating an electronic database for monitoring and regulating the industry.
• Managed by a board of directors and a general manager.
• The board comprises seven members, representing various ministries and experts in related fields.
• The authority has exclusive rights to issue licenses for cultivation and related operations.
• Types of licenses include importation, cultivation, manufacturing, research, and exportation, among others.
• Entities eligible for licenses include Lebanese pharmaceutical and industrial companies, foreign companies, cooperatives, individual farmers, and research institutions.
• Licenses are issued for three years and include specific conditions, with a renewal process in place.
• Applications are evaluated for compliance with legal standards, and decisions are made within sixty working days.
• The authority must provide clear reasoning for any rejection, and applicants have the right to appeal.
• Regular inspections ensure adherence to license conditions and industry standards.
• The law emphasizes transparency and traceability from seed importation to product sale.
• Licensed entities must maintain detailed records accessible to the authority and preserved for ten years.
• Entities must comply with the conditions for importation and exportation, including submitting detailed operational plans to the authority.
• Annual estimates and periodic data must be provided to both the authority and the International Narcotics Control Board.
• A specialized register, overseen by the General Director, logs all transactions and losses, with strict prohibitions on record alterations.
• Criminal penalties for violations include imprisonment, fines, and license revocation.
• Companies are required to fund awareness campaigns and support rehabilitation initiatives.
• Personnel implementing the law are subject to existing tax laws.
• The law aims to provide economic benefits, support sustainable development, and align with global trends in regulating cannabis cultivation.

4. Research Gap

6. discussion, 7. conclusions, author contributions, institutional review board statement, data availability statement, conflicts of interest.

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Share and Cite

Abboud, M.; Gemayel, J.; Khnayzer, R.S. Replacing Tobacco with Hemp in the Beqaa Is Financially Rewarding for Farmers and Government in Lebanon. Agriculture 2024 , 14 , 1349. https://doi.org/10.3390/agriculture14081349

Abboud M, Gemayel J, Khnayzer RS. Replacing Tobacco with Hemp in the Beqaa Is Financially Rewarding for Farmers and Government in Lebanon. Agriculture . 2024; 14(8):1349. https://doi.org/10.3390/agriculture14081349

Abboud, Mazen, Joseph Gemayel, and Rony S. Khnayzer. 2024. "Replacing Tobacco with Hemp in the Beqaa Is Financially Rewarding for Farmers and Government in Lebanon" Agriculture 14, no. 8: 1349. https://doi.org/10.3390/agriculture14081349

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Press Release

Amd reports second quarter 2024 financial results, related documents.

SANTA CLARA, Calif., July 30, 2024 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2024 of $5.8 billion, gross margin of 49%, operating income of $269 million, net income of $265 million and diluted earnings per share of $0.16. On a non-GAAP ( *) basis, gross margin was 53%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.69.

“We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue,” said AMD Chair and CEO Dr. Lisa Su. “Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business.”

 “AMD executed well in the second quarter, with revenue above the midpoint of our guidance driven by strong growth in the Data Center and Client segments,” said AMD EVP, CFO and Treasurer Jean Hu. “In addition, we expanded gross margin and delivered solid earnings growth, while increasing our strategic AI investments to build the foundation for future growth.”

GAAP Quarterly Financial Results

Non-GAAP(*) Quarterly Financial Results

Segment Summary

• Record Data Center segment revenue of $2.8 billion was up 115% year-over-year primarily driven by the steep ramp of AMD Instinct™ GPU shipments, and strong growth in 4 th Gen AMD EPYC™ CPU sales. Revenue increased 21% sequentially primarily driven by the strong ramp of AMD Instinct GPU shipments.
• Client segment revenue was $1.5 billion, up 49% year-over-year and 9% sequentially primarily driven by sales of AMD Ryzen™ processors.  
• Gaming segment revenue was $648 million, down 59% year-over-year and 30% sequentially primarily due to a decrease in semi-custom revenue.
• Embedded segment revenue was $861 million, down 41% year-over-year as customers continued to normalize their inventory levels. Revenue increased 2% sequentially.

Recent PR Highlights

• At Computex 2024, AMD unveiled an expanded AMD Instinct accelerator roadmap, bringing an annual cadence of leadership AI performance and memory capabilities. The roadmap includes the new AMD Instinct MI325X accelerator, planned to be available in Q4 2024, with leadership memory capacity and compute performance. The next generation AMD CDNA™ 4 architecture, planned for 2025, is expected to bring up to a 35x increase in AI inference performance compared to AMD Instinct accelerators based on AMD CDNA 3.
• AMD announced the AMD Ryzen AI 300 Series processors, the company's third generation processor for AI PCs, with industry-leading 50 TOPs of AI processing power for Windows Copilot+ PCs. OEMs including Acer, ASUS, HP, Lenovo and MSI unveiled new devices powered by the lineup.
• AMD and industry leaders announced the Ultra Accelerator Link promoter group which will leverage AMD Infinity Fabric™ technology to advance open standards-based AI networking infrastructure systems.
• Cloud providers showcased offerings powered by AMD Instinct MI300X accelerators, with Microsoft announcing the general availability of new Azure ND MI300X V5 instances, which provide leading price/performance for GPT workloads.
• AMD launched the Radeon™ PRO W7900 Dual Slot GPU for high-performance AI workstations and expanded AMD ROCm™ 6.1.3 software support to enhance AI development and deployment with select AMD Radeon desktop GPUs.
• AMD previewed 5 th Gen AMD EPYC processors, codenamed “Turin,” powered by the new “Zen 5” core architecture and planned to be available in 2H 2024.
• Oracle announced the HeatWave GenAI solution powered by AMD EPYC CPUs, enabling customers to bring the power of generative AI to their enterprise data without requiring AI expertise.
• AMD announced the AMD EPYC 4004 Series processors , a new cost-optimized offering that delivers enterprise-class features and leadership performance for small and medium businesses.
• The latest Top500 List ranked the Frontier supercomputer at Oak Ridge National Lab – powered by AMD EPYC CPUs and AMD Instinct GPUs – the fastest supercomputer in the world for the third year in a row. The list also included three new systems powered by the AMD Instinct MI300A APU at Lawrence Livermore National Laboratories, including the El Capitan Early Delivery System.
• AMD announced the new AMD Ryzen 9000 Series processors based on the “Zen 5” architecture, delivering leadership performance in gaming, productivity and content creation.
• AMD unveiled the AMD Ryzen PRO 8040 Series and 8000 Series mobile and desktop processors with cutting-edge performance, manageability and security features for today’s enterprises.
• Sun Singapore announced that it is using AMD Zynq™ UltraScale+™ MPSoC devices to power its large network of AI-based smart parking services, accelerating video analytics and real-time inferencing.
• Optiver announced that it is using a broad range of AMD high-performance compute engines , including AMD EPYC CPUs, AMD Solarflare™ ethernet adapters, Virtex™ FPGAs and Alveo™ accelerators to power its data center infrastructure, unlocking trading performance and efficiency across more than 100 financial markets.

Current Outlook AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

For the third quarter of 2024, AMD expects revenue to be approximately $6.7 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 16% and sequential growth of approximately 15%. Non-GAAP gross margin is expected to be approximately 53.5%.

AMD Teleconference AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its second quarter 2024 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com .

About AMD For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website , blog , LinkedIn and X pages.

Cautionary Statement

This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s expectations about revenue growth in the second half of 2024; AMD’s expectations about generative AI opportunities; AMD’s expectations about future growth; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected third quarter 2024 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; Nvidia’s dominance in the graphics processing unit market and its aggressive business practices; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; competitive markets in which AMD’s products are sold; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to introduce products on a timely basis with expected features and performance levels; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD's supply chain; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; long-term impact of climate change on AMD’s business; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses;  impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

AMD, the AMD Arrow logo, EPYC, Radeon, Ryzen, Instinct, Versal, Alveo, Kria, FidelityFX, 3D V-Cache, Ultrascale+, Zynq, Threadripper and combinations thereof, are trademarks of Advanced Micro Devices, Inc.

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income (loss) for interest expense, other income (expense), net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense (including amortization of acquisition-related intangibles), inventory loss at contract manufacturer, and acquisition-related and other costs. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.

Media Contact: Drew Prairie AMD Communications 512-602-4425 [email protected]          Investor Contact: Mitch Haws AMD Investor Relations 408-749-3124 [email protected]

Released July 30, 2024