This is the definitive guide to how to analyse and assess the strengths and weaknesses of any company. How do you tell how well run a company is and how well it is doing? Which ratios and benchmarks should you use to assess performance? What can be done to massage company results? How do you recognise danger signs on the corporate horizon? How do you compare companies operating in different sectors or even different countries? All these important questions as well as many more are answered in this clear and comprehensive guide aimed at anyone who wants to: make sense and practical use of a company's annual report; measure a business against its competitors; judge the creditworthiness of a customer or client; assess the investment potential of a company; and, put a value on a company.
Part I: Understanding the Basics
1. The Annual Report - an What Underlies It
2. The Balance Sheet
3. The Income Statement
4. The Cash Flow Statement
5. Other Statements
Part II: Assessing the Facts
6. Guidelines for Financial Analysis
7. Measuring Profitability
8. Measuring Efficiency
9. Working Capital and Liquidity
10. Capital and Valuation
11. Strategy, Success and Failure
Part III: Useful Benchmarks
12. Ratios Compared Across Sectors and Countries
About Bob Vause
A H (Bob) Vause is a Fellow of the Institute of the Chartered Accountants and an Emeritus Fellow of Templeton College, Oxford, where he has taught for more than 20 years. He is consultant to many large companies.