10
Ratios
METHOD
This chapter sets out a workable ratios method for analysing and evaluating the accounting statements. With the accounts in a standardised format, you can then code templates to analyse the figures. The framework in Figure 10.1 shows the process of examining the strategy followed by the management and the results for both financial analysis and valuation purposes. You need to try to understand the factors that can influence the cash flow and assess the potential level of risk or downside. Whilst the absolute ratios will vary by industry and country, you need to assess whether the ...
Get Mastering Cash Flow and Valuation Modelling now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
