September 2020
Beginner
184 pages
4h 46m
English
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CHAPTER 4
Financial Metrics
In the previous chapter we introduced the main components of the financial statements. This chapter focuses on analyzing those financial statements as well as a few other important parameters that are used for successful financial management. This chapter reviews the basics of data analysis as well as ratio analysis. It will form the basis of the following chapter, which looks at planning and forecasting.
Having data is great, but data alone cannot tell you much. What is necessary is an analysis and interpretation of the data. One of the key principles for managing data is to realize that a business is not a static activity and thus looking at the data on a static basis in not that helpful or insightful. What is much ...
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