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. …
Tag: money
Valuing a Start Up Conjuring Wealth out of Thin Air In order to raise money for a venture, you must first come up with a valuation for the nascent enterprise. Valuing a start up can seem like an act of legerdemain, a magic trick. How do you put a concrete value on something that…
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…
What does the Balance Sheet balance? The balance sheet is structured to show the amount and type of assets an enterprise owns and how those assets are funded. One side of the balance sheet shows what you have (assets) and the other side shows how you paid for it (debt and equity). Assets can…
