O'Reilly logo

Leveraged Buyouts: A Practical Introductory Guide to LBOs by David Pilger

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 4: Anatomy of a Practitioner’s Analysis

Overview of Financial Statements

Financial statements are the lifeblood of all corporate financial analysis. Historical financials are analyzed to understand the history, growth and earnings performance of the company. By looking at a company’s historical performance via financial statements, certain operating ratios can be identified that help give an indication of where the company is headed. These include things such as inventory turnover as well as revenue growth trends. Once trends are identified they can be used to help form reasonable assumptions for projecting future performance in the form of pro forma financials.

“By looking at a company’s historical performance via financial statements, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required