Key Management Ratios, 4th edition
The Clearest Guide to the Critical Numbers That Drive
Your Business
By Ciaran Walsh
Financial Times / Pearson Education
August 2006
ISBN: 0273707310
401 Pages, Illustrated, 6 1/8 x 9 1/8”
$59.50 paper original
Business ratios are the figures that provide management with targets and standards
for their organisation. They direct businesses towards the most beneficial long-term
strategies, as well as towards effective decision making.
This book enables managers of different functions to work together towards achieving
business goals. It links the return on financial resources into the day-to-day
operating parameters of the business - skills which any manager from any background
can implement.
Areas covered include:
--the foundations
--the cash flow cycle
--financial leverage
--measuring and operating performance
--corporate valuation
--investment ratios
CONTENTS:
PART I FOUNDATIONS
1 Background
2 Financial statements
3 Balance sheet terms
4 Profit and loss account
PART II OPERATING PERFORMANCE
5 Measures of performance
6 Operating performance
7 Performance drivers
PART III CORPORATE LIQUIDITY
8 Cash flow cycle
9 Liquidity
10 Financial strength
11Cash flow
PART IV DETERMINANTS OF CORPORATE VALUE
12 Corporate valuation
13 Financial leverage and corporate valuation
14 Growth
PART V MANAGEMENT DECISION-MAKING
15 Cost, volume and price relationships
16 Investment ratios
17 Shareholder value added (SVA)
18 Acquisition analysis
PART VI THE USE & ABUSE OF RATIOS
19 Integrity of account statements
Appendix 1: Special items
Appendix 2: Companies used in the sample
Appendix 3: Full set of ratio charts from sample companies
Glossary
Index
Author
Ciaran Walsh is Senior Specialist Finance at the Irish Management Institute,
Dublin. He is trained both as an economist and an accountant and had 15 year's
industry experience before joining the academic world.His work with senior managers
over many years has enabled him to develop his own unique approach to training
corporate finance. As a consequence, he has lectured in most European countries,
and the Middle East. His main research interest is to identify and computerize
the links that tie corporate growth and capital structure into stockmarket valuation.
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