Chapter 8
Calculating Capital
IN THIS CHAPTER
Measuring efficient use of capital with investor analytics
Assessing liquidity and financial risk with bank analytics
Zeroing in on property and long-term debt with asset-management analytics
No one watches a company’s finances closer than the people who give that company money. Like a loan shark, or Sting, the people and organizations that invest in your company will know every move you make, every breath you take — they’ll be watching you.
Therefore, you may not be surprised to hear that many of the best metrics available have been developed (and are used) by people who have a financial stake in the success of one or more companies. The same information used by many of these specialists is now the gold standard for individuals who want to do some personal investing, for corporate management and business analysts wanting to know how well their company is performing for external stakeholders, and for employees wondering whether they’ll have a job tomorrow.
Although some of the metrics listed in this chapter truly are special use, meaning that they’re intended for companies from particular industries, many of them double as measures ...
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