Course 310:
Segment Analysis
In this course
1 Introduction
2 Research Revenues
3 Profitability Is Key

Many companies aren't in just one business. Companies often have two or more businesses, each contributing to the bottom line and each influencing the overall character of the company. That's why it is a good idea to pick apart a company's business segments when valuing the entire corporation. It may be helpful to think about these companies as mutual funds, but instead of holding portfolios of stocks or bonds, they hold businesses. Stocks and bonds drive the performance of a fund, and individual businesses drive the operating performance--and therefore the stock price--of a company. U.S. companies with more than one business generally list a breakdown of sales, operating earnings, and assets by business segment and geographical region in their annual reports. Segment information is usually at the back of the report, toward the end of the footnotes. You can find segment information for some companies in their Morningstar Stock Report.

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