... 18 Financial Analysis: Toolsand Techniques production, carefully calibrated against quality standards and relative contributionfrom products and services, or cost effectiveness standards ... 9/27/01 10:57 AM Page 2 10 Financial Analysis: Toolsand Techniques The Practice of Financial/ Economic Analysis The financial/ economic analysis sponsored and used by the economic managercan ... peers and the market as a whole, as we’ll discuss in Chapters 4 and 12.hel78340_ch02.qxd 9/27/01 10:59 AM Page 23 2 Financial Analysis: Toolsand Techniques For many years the purpose and contribution...
... both for the financial/ economic dimensions of systematicbusiness management and for understanding the nature of financial statements,data, and processes underlying financialanalysis techniques. ... organizations and empoweredemployees. Empowerment begins with knowledge and is expanded by targetedtraining, which includes understanding the nature and relevance of financial/ eco-nomic data, and is ... activity, and evaluating financial ratios and measures must rest on an understanding ofthese activity-based indicators. In well-managed companies there is a close con-nection between physical and financial...
... 2 Financial Analysis: Toolsand Techniques For many years the purpose and contribution of this book have been to helpmake financial/ economic analysis a practical, understandable and usable processfor ... organizations and empoweredemployees. Empowerment begins with knowledge and is expanded by targetedtraining, which includes understanding the nature and relevance of financial/ eco-nomic data, and is ... company relative to its peers and the market as a whole, as we’ll discuss in Chapters 4 and 12.hel78340_ch02.qxd 9/27/01 10:59 AM Page 23 4 Financial Analysis: Toolsand Techniques It is here that...
... Team-Flyđ 2 Financial Analysis: Toolsand Techniques For many years the purpose and contribution of this book have been to helpmake financial/ economic analysis a practical, understandable and usable ... both for the financial/ economic dimensions of systematicbusiness management and for understanding the nature of financial statements,data, and processes underlying financialanalysis techniques. ... organizations and empoweredemployees. Empowerment begins with knowledge and is expanded by targetedtraining, which includes understanding the nature and relevance of financial/ eco-nomic data, and is...
... 2 Financial Analysis: Toolsand Techniques For many years the purpose and contribution of this book have been to helpmake financial/ economic analysis a practical, understandable and usable ... Fi-nancial Analysis: Toolsand Techniques. viihel78340_FM.qxd 9/27/01 10:56 AM Page viiCopyright 2001 The McGraw-Hill Companies, Inc. Click Here for Terms of Use. 8 Financial Analysis: Toolsand Techniques the ... differentiate between purely financial analysis on one hand, and economic analysisand trade-offs on the other. As wementioned, the first is largely based on financial statements and accounting data,while...
... 19 18 Financial Analysis: Toolsand Techniques production, carefully calibrated against quality standards and relative contributionfrom products and services, or cost effectiveness standards ... 12 Financial Analysis: Toolsand Techniques a coherent structure of the proposal, its relevant alternatives, and all of its keyvariables and the risks expected. It is here where judgment and ... 9/27/01 10:57 AM Page 9 10 Financial Analysis: Toolsand Techniques The Practice of Financial/ Economic Analysis The financial/ economic analysis sponsored and used by the economic managercan be viewed...
... Team-Flyđ 50 Financial Analysis: Toolsand Techniques in evaluating the financial, and more importantly, the economic, performance ofthe business under review.The Context of Financial Analysis Now ... sourcesAnalytical framework and tools Overall results and value creationOperationaleffectivenessInvestmenteffectivenessFinancingeffectiveness26 Financial Analysis: Toolsand Techniques hel78340_ch02.qxd ... differentiate between purely financial analysis on one hand, and economic analysisand trade-offs on the other. As wementioned, the first is largely based on financial statements and accounting data,while...
... retainedearnings.hel78340_ch03.qxd 9/27/01 11:00 AM Page 79 92 Financial Analysis: Toolsand Techniques 2. Operational funding is affected by both internal and external conditions and causes, which must be understood ... property, plant, and equipment,reflecting new capital spending as well as disposals, and the impact of thehel78340_ch03.qxd 9/27/01 11:00 AM Page 82 84 Financial Analysis: Toolsand Techniques acquisitions, ... 72 Financial Analysis: Toolsand Techniques Since the required investment in accounts receivable and inventories is nor-mally much more than twice the credit obtained from current payables and...
... assetshel78340_ch04.qxd 9/27/01 11:07 AM Page 108 136 Financial Analysis: Toolsand Techniques based on cash flows, and if decisions are consistently analyzed and executed inthis manner, positive accounting ... straight-line in Year 4; required for 15- and 20-year IRS asset classes.hel78340_ch04.qxd 9/27/01 11:07 AM Page 143 134 Financial Analysis: Toolsand Techniques The relationships expressed here ... 116 Financial Analysis: Toolsand Techniques to this last aspect are discussed in detail in Chapters 10 and 11; therefore we’llmake only brief reference...
... materials, overhead, and hel78340_ch05.qxd 9/27/01 11:14 AM Page 164 178 Financial Analysis: Toolsand Techniques loom much larger in a service business, while purchases, inventories, and creditterms ... hence and a look at the overall financial condition of the company at thattime, as well as one year later.hel78340_ch05.qxd 9/27/01 11:14 AM Page 167 170 Financial Analysis: Toolsand Techniques gain ... eitherhel78340_ch05.qxd 9/27/01 11:14 AM Page 173 182 Financial Analysis: Toolsand Techniques receipts and collections, repayment schedules, operating rates, inventory levels, and so on, they will all precisely...
... Financial Analysis: Toolsand Techniques interest as the threshold return, it’s the overall cost of capital that must be met and exceeded.Given that higher standard, however, the effect of financial ... taxes.hel78340_ch06.qxd 9/27/01 11:13 AM Page 208 222 Financial Analysis: Toolsand Techniques In the end, the key test of financialanalysis is the viability of the methods and results as predictors of future ... secondary role. As we’ll discuss and demonstrate in more detail inhel78340_ch06.qxd 9/27/01 11:13 AM Page 209 210 Financial Analysis: Toolsand Techniques Chapters 11 and 12, shareholder value creation...
... Besley; and Eugene Brigham. Essentials of Managerial Finance. 11thed. Hinsdale, IL: Dryden Press, 1997.hel78340_ch07.qxd 9/27/01 11:19 AM Page 251 242 Financial Analysis: Toolsand Techniques estimates. ... 228 Financial Analysis: Toolsand Techniques The use of the continuous flow option introduces a forward shift in timing thatleads to slightly higher present values, both for single sums and ... the uncertainty of estimates and the need to integrate projects into business strategy.hel78340_ch07.qxd 9/27/01 11:19 AM Page 249 248 Financial Analysis: Toolsand Techniques useful tool for...
... 276 Financial Analysis: Toolsand Techniques resources just as definite as an expenditure for buildings and equipment, exceptthat no depreciation write-off is involved. If all inventories and ... 280 Financial Analysis: Toolsand Techniques annual benefits of $4.0 million before taxes. For simplicity we’ve assumed levelcash flows and straight-line depreciation over 7 years, and the ... only.hel78340_ch08.qxd 9/27/01 11:28 AM Page 269 274 Financial Analysis: Toolsand Techniques even when this more stringent test is applied. While one could argue for and against either method, consistent application...
... Team-Flyđ 354 Financial Analysis: Toolsand Techniques SummaryIn this chapter we’ve reviewed both the decisional framework and some of the techniques used to analyze the different ... anhel78340_ch10.qxd 9/27/01 11:30 AM Page 339 350 Financial Analysis: Toolsand Techniques In the comparative analysis of the final choice between leasing and owner-ship we have to weigh such elements ... 340 Financial Analysis: Toolsand Techniques assumed EPS of zero and deriving an EBIT that just provides for this condition.The calculation is shown in Figure 10–7 for the original situation and...