Financial Ratio Analysis There are essentially two basic techniques that are used in Corporate Finance. One is the ratio analysis of financial statements and the other is calculating the present value of future cash flows. Bankers, investors, financiers, CFOs and entrepreneurs use these tools and techniques to value assets and make decisions. …
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The Big Picture of Financial Statements The three Financial Statements: Balance Sheet, Income Statement, and Cash Flow Statement, are interconnected and the accounting numbers flow through them. They are the measure of a company’s performance and health. The basic interconnection starts with a Balance Sheet showing the financial position at the beginning of the…
Understanding Financial Statements: The Income Statement There are two basic financial statements: the Balance Sheet and the Income Statement. The daily operations of a business are measured in the money that comes in as revenues, the money that goes out as expenses, the money that is retained as profit, the money that is invested in…