Guide to Analysing Companies / Edition 4 available in Hardcover
In today's volatile, complex and fast-moving business world, it can be difficult to gauge how sound a company really is. An apparently strong balance sheet and impressive reported profits may be hiding all sorts of problems that could even spell bankruptcy. So how do you:
Know whether a company is well run and doing well?
Decide which ratios and benchmarks to use to assess performance?
Work out if a company has massaged its results?
Recognise the danger signs on the corporate horizon?
Compare companies operating in different sectors or countries?
These and many other important questions are answered in a completely updated and revised sixth edition of this clear and comprehensive guide. It is aimed at anyone who wants to understand a company's annual report, judge a customer's creditworthiness, assess a company's investment potential, and much more.
About the Author
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.
Table of Contents
Part 1. Understanding the basics.
1. The annual report - and what underlies it.
2. The balance sheet.
3. The income statement.
4. The cash flow statement.
Part 2. Assessing the facts.
5. Guideleines for financial analysis.
6. Measuring profitability.
7. Measuring efficiency.
8. Working capital and liquidity.
9. Capital and valuation.
10. Strategy, success and failure.
Part 3. Useful Benchmarks.
11. Practical examples of ratio analysis.
Abbreviations and acronyms.