How to measure the performance of any company - The Key2Profit Series

Many find that financial statement analysis and valuation are two distinct and very difficult disciplines. It is hard to blame them. The business language of accounting and finance is characterized by an enormous number of ‘buzz-words’ and abbreviations. Examples of typical accounting and finance jargon includes EBIT, EBITDA, return on invested capital, profit margin, asset turnover, DCF-model, EVA-model, WACC, and multiples to name a few.

This book is the first in a series that tries to demystify financial statement analysis and valuation. It focuses on the overall drivers of value: Growth, performance or profitability, and liquidity/risk.

The book includes:
• An introduction to financial statements
• Profitability analysis and financial ratios
• Discussion of valuation methods; based on discounted cash flows and multiples
• A thorough discussion of the cost capital

The book is designed so you as a businessman can benefit from it in different ways. First, if you need an executive overview the Executive Summary will, in a few pages, guide and update you, getting right to the point.

Second, this book can be used as a practitioners’ handbook, where you concentrate on sections that are relevant to you, so you are better equipped to make business decisions. Third, the book as a whole is designed in order for a practitioner to get a firm grip of Valuation and Performance Measurement by reading it all.