... positioning
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10 Financial Analysis: Tools and Techniques
The Practice of Financial/ Economic Analysis
The financial/ economic analysis sponsored and used by the economic ... viewpoints:
Financial accounting.
Investor analysis.
Managerial economics.
In our discussions we’ll continue to differentiate between purely financial
analysis on one hand, and economic analysis ... Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial Growth Model 210
Sustainable Growth and the Sustainable Growth Equation 214
Integrated Financial Plan...
... these
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10 Financial Analysis: Tools and Techniques
The Practice of Financial/ Economic Analysis
The financial/ economic analysis sponsored and used by the economic manager
can ... 9/27/01 10:59 AM Page 23
2 Financial Analysis: Tools and Techniques
For many years the purpose and contribution of this book have been to help
make financial/ economic analysis a practical, understandable ... viewpoints:
Financial accounting.
Investor analysis.
Managerial economics.
In our discussions we’ll continue to differentiate between purely financial
analysis on one hand, and economic analysis...
... Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial Growth Model 210
Sustainable Growth and the Sustainable Growth Equation 214
Integrated Financial Plan ... to financial statements and analytical tools as presented in Chap-
ter 2. The coverage of analytical methods begins in Chapter 3 with funds flow
analysis, moves on to financial performance analysis, ... relevance of the financial/
economic data, and to assist the non -financial personnel in the appropriate use
of decision criteria and tools. At the same time, as we observed earlier, non-
financial managers...
...
Team-Fly
®
2 Financial Analysis: Tools and Techniques
For many years the purpose and contribution of this book have been to help
make financial/ economic analysis a practical, understandable ... to financial statements and analytical tools as presented in Chap-
ter 2. The coverage of analytical methods begins in Chapter 3 with funds flow
analysis, moves on to financial performance analysis, ... California, developers of Financial Genome, an advanced knowledge-based
financial analysis and business modeling software, which is complementary to Fi-
nancial Analysis: Tools and Techniques.
vii
hel78340_FM.qxd...
... Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial Growth Model 210
Sustainable Growth and the Sustainable Growth Equation 214
Integrated Financial Plan ...
Team-Fly
®
2 Financial Analysis: Tools and Techniques
For many years the purpose and contribution of this book have been to help
make financial/ economic analysis a practical, understandable ... to financial statements and analytical tools as presented in Chap-
ter 2. The coverage of analytical methods begins in Chapter 3 with funds flow
analysis, moves on to financial performance analysis, ...
... 2 Financial Analysis: Tools and Techniques
For many years the purpose and contribution of this book have been to help
make financial/ economic analysis a practical, understandable ... viewpoints:
Financial accounting.
Investor analysis.
Managerial economics.
In our discussions we’ll continue to differentiate between purely financial
analysis on one hand, and economic analysis ... Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial Growth Model 210
Sustainable Growth and the Sustainable Growth Equation 214
Integrated Financial Plan...
... California, developers of Financial Genome, an advanced knowledge-based
financial analysis and business modeling software, which is complementary to Fi-
nancial Analysis: Tools and Techniques.
vii
hel78340_FM.qxd ... Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial Growth Model 210
Sustainable Growth and the Sustainable Growth Equation 214
Integrated Financial Plan ... 9/27/01 10:56 AM Page xiii
2 Financial Analysis: Tools and Techniques
For many years the purpose and contribution of this book have been to help
make financial/ economic analysis a practical, understandable...
... next.
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10 Financial Analysis: Tools and Techniques
The Practice of Financial/ Economic Analysis
The financial/ economic analysis sponsored and used by the economic ... Multinational FinancialAnalysis 469
INDEX 477
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xii Contents
Target Profit Analysis 202
Financial Leverage 203
Financial Growth Plans 209
Basic Financial ... relevance of the financial/
economic data, and to assist the non -financial personnel in the appropriate use
of decision criteria and tools. At the same time, as we observed earlier, non-
financial managers...
...
Team-Fly
®
50 Financial Analysis: Tools and Techniques
in evaluating the financial, and more importantly, the economic, performance of
the business under review.
The Context of Financial Analysis
Now ... how the major financial/ economic analysis
FIGURE 2–3
The Broad Context of Financial/ Economic Analysis
Economic and competitive environment
Data sources
Analytical framework and tools
Overall ... viewpoints:
Financial accounting.
Investor analysis.
Managerial economics.
In our discussions we’ll continue to differentiate between purely financial
analysis on one hand, and economic analysis...
... fund
the underlying expansion of all financial requirements. Successful growth can’t be
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66 Financial Analysis: Tools and Techniques
As production begins, ... in the net change in retained
earnings.
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92 Financial Analysis: Tools and Techniques
2. Operational funding is affected by both internal and external ... manufacturing but are minor elements in
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82 Financial Analysis: Tools and Techniques
TRW’s statement of earnings, or income statement, reproduced in Figure
3–14,...
... share
Operating expense analysis Share price appreciation
Contribution analysis Total shareholder return
Operating leverage
Comparative analysis
Resource Management Disposition of Earnings Financial Leverage
Asset ... for 15- and 20-year IRS asset classes.
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134 Financial Analysis: Tools and Techniques
The relationships expressed here serve as a simple model of the key ... purely financial and some economic. No one ratio or measure
can be considered predominant. In this chapter, we’ll demonstrate primarily the
analysis of business performance based on published financial...
... and a look at the overall financial condition of the company at that
time, as well as one year later.
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170 Financial Analysis: Tools and Techniques
gain ... conditions can all be ex-
pressed in financial terms.
Sensitivity Analysis
As we mentioned, one of the advantages of financial modeling is the ability to
perform sensitivity analysis with considerable ... resources
databases
Investment
databases
Operational
databases
Customer
databases
Market
databases
Financing
assumptions
Corporate
financial
database
Past and pro
forma financial
statements
Cash flow
analysis and
projections
Economic
analyses
Performance
analyses
Financial
model
Technology
databases
Logistics
databases
Competitor
databases
Vendor
databases
hel78340_ch05.qxd...
... income taxes.
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222 Financial Analysis: Tools and Techniques
In the end, the key test of financialanalysis is the viability of the methods
and results as ... Financial Analysis: Tools and 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 ... of financial objectives and financial policies
to direct and constrain the company’s planning effort and the specific financial
projections based on these plans. One of the most commonly used financial...