Financial analysis tool and techniques

When an analyst, business executive, or student is dealing with a financial issue, or wishes to understand the financial implications and economic tradeoffs involved in decisions about business investment, operations, or financing, a wide
variety of analytical techniquesand sometimes rules of thumbis available to generate quantitative answers. Selecting the appropriate tools from these choices is clearly an important part of the analytical task. Yet, experience has shown again
and again that first developing a proper perspective for the problem or issue is just as important as the choice of the tools themselves. Therefore, this book not only presents the key financial tools generally used, but also explains the broader context of how and where they’re applied to obtain meaningful answers. To this end, the second chapter provides an integrated conceptual backdrop both for the financial/economic dimensions of systematic business management and for understanding the nature of financial statements, data, and processes underlying financial analysis techniques. All subjects are viewed in the context of creating shareholder valuea fundamental concept that is revisited in the final chapter on managing for shareholder value.

Từ khóa: economic tradeoffs, Financial analysis, business investment, kinh tế tài chính, phân tích tài chính, đầu tư kinh doanh