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Financial Performance

Book Description

'Financial Performance' presents the foundation concepts underlying the Senior Executive Programmes the Authors have taught together and separately over the last 15 years in Europe, Asia and North America.

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright page
  5. Introduction
    1. Part 1 Performance Measurement
    2. Part 2 Valuation
  6. Part 1: Performance Measurement
    1. 1: Review of financial statements 1: The balance sheet
      1. 1.1 Introduction
      2. 1.2 Deconstructing the balance sheet
      3. 1.3 Assets
      4. 1.4 Total liabilities and stockholders’ equity
      5. 1.5 Reconstructing the balance sheet for further analysis
      6. 1.6 What does the balance sheet reveal?
      7. 1.7 What is missing from the balance sheet?
    2. 2: Review of financial statements 2: The income statement and the statement of cash flows
      1. 2.1 Introduction to flow statements
      2. 2.2 The income statement
      3. 2.3 Earnings per share (eps)
      4. 2.4 Rearranging the income statement
      5. 2.5 What does the income statement reveal?
      6. 2.6 The cash flow statement
      7. 2.7 Rearranging the cash flow statement
      8. 2.8 Summary of financial statement review
    3. 3: Assessing financial health
      1. 3.1 Introduction
      2. 3.2 Financial ratios
      3. 3.3 How profitable is DaimlerChrysler? – profitability ratios
      4. 3.4 How effective is DaimlerChrysler? – efficiency ratios
      5. 3.5 How is DaimlerChrysler financed? – financing ratios
      6. 3.6 How liquid is DaimlerChrysler? – liquidity ratios
      7. 3.7 The drivers of ROE
      8. 3.8 Constraints on long-term growth – sustainability
      9. 3.9 Understanding the relationships among profitability, financial policy and growth
      10. 3.10 Stock market measures
      11. Appendix 3A Summary of key financial ratios
      12. Appendix 3B The relationship between ROE and ROA
  7. Part 2: Valuation
    1. 4: The cost of capital: concept and measurement
      1. 4.1 Thinking about risk and return: a quick overview of capital asset pricing model (CAPM)
      2. 4.2 Calculating the cost of capital
      3. 4.3 Single versus multiple cost of capital
      4. 4.4 The cost of capital in an international framework
      5. 4.5 The use of cost of capital in measuring value creation: the concept of economic value added (EVA)
      6. 4.6 The use of cost of capital and EVA in understanding financial policies: the example of share repurchases
    2. 5: Valuation: principles and methods
      1. 5.1 The basic discounted cash flow (DCF) approach: a simple example
      2. 5.2 Investment decision techniques
      3. 5.3 The parameters for valuation in the DCF approach
      4. 5.4 Business valuation: a review of different methods
      5. 5.5 Discounted cash flow methods and economic value added (EVA)
      6. 5.6 Value creation and value drivers
    3. 6: Shareholder value: a European perspective
      1. 6.1 The main drivers of change in Europe towards shareholder value
      2. 6.2 The remaining barriers to shareholder value focus in Europe
      3. 6.3 Mergers and acquisitions (M&A) in Europe
      4. 6.4 Spin-offs, demergers and carve-outs in Europe
      5. 6.5 Share repurchase in Europe<sup xmlns="http://www.w3.org/1999/xhtml" xmlns:epub="http://www.idpf.org/2007/ops">19</sup>
      6. 6.6 Shareholder value in Europe: some concluding comments
  8. Index