A Manager's Guide to Financial Analysis

1

Financial Decision Making and the Techniques Used in Financial Analysis

Learning Objectives

By the end of this chapter, you should be able to:

•  Define financial analysis and discuss the financial analyst’s role in the organization.

•  List at least six financial management responsibilities and three areas of activity to be reported in financial statements.

•  Describe how business strategy and the competitive environment affect financial management decisions.

•  Identify analytical techniques that the financial analyst can apply to investment, financing, and operational decisions.

•  Define the primary goal of financial analysis and describe ...