Guide to Analysing Companies, 5^th Ed.

A. H. (Bob) Vause

Publisher: The Economist, 2009 , 328 pages

ISBN: 978-1-84668-121-9

Synopsis:

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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 kinds of worrying truths, which could even include looming bankruptcy. So, how do you tell how well run a company is and how well it is doing?

• Which ratios and benchmarks are best to use when assessing a company’s performance?
• How do you recognise danger signs on the corporate horizon?
• What may be done to massage company results?
• How do you make comparisons between companies in different sectors or different countries?

All these questions as well as many more are answered in this fully revised and updated, clear and comprehensive guide to how businesses can be analysed and assessed.

Table of Contents:

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• Introduction
• 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. Guidelines 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