Business Analysis and Evaluation: Effectively Utilizing Financial Statements

Author: (USA) Palepu
Publisher:
Publish Date: 2006-09-01
Features: Financial statements are a series of bases for business analysis. For corporate managers, financial statements can be used to monitor and judge the performance of their own companies compared to competitors, to communicate information with external investors, to help managers determine the financial policies to adopt, and to evaluate potential new businesses as acquisition targets during the investment decision-making process. For securities analysts, financial statements can be used to evaluate and assess the companies they recommend to clients. For bankers, financial statements can be used to decide whether to provide loans to customers and determine the loan terms. For investment bankers, financial statements serve as a basis for evaluating and analyzing expected acquisitions and mergers. For consultants, financial statements are the basis for providing competitive analysis to clients. Therefore, we find that many business students strongly demand a course that can provide them with a theoretical framework for applying financial statement data to business analysis and evaluation in various situations. The purpose of this book is to provide such a theoretical framework for business students and practitioners.