May 13, 2015
The CFA exams are so near and your preparations would have entered into the last leg now. It is now time to accelerate and revise & a widely used tool is a Mind Map.
What should a Mind Map do?
Great! I have so many Mind Maps available from different sources (Videos, Notes, Forums).
Let me download a few and I can save so much time!
Watch out for falling to this temptation. While it is definitely easy to download, it would be good make the Mind Maps for yourself. Here’s why:
Here are a few tools & techniques that would help you in making your own FRA Mind Map
Treat the Income Statement and Cash Flow Statements as a Funnel. It will help you remember various measures of profit & associated ratios
The operations of a business can be looked at it as a wheel which needs to keep turning to keep generating cash (liquidity). This is a good way to recall the working capital linked formulae & the turnover ratios.
Once you link the impact of the Inventory valuation method on any one of the profit measures; rest can be derived automatically. This will greatly reduce the number of formulae you need to remember
Use a simple hierarchy table to capture various factual data.
This can be effectively used to concise large volume readings.
Keep the following tips in mind while making a Mind Map of your own: