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Financial Ratios for Executives: How to Assess Company Strength, Fix Problems, and Make Better Decisions by Albert J. Pizzica, Michael Rist

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CHAPTER 3

ABC Company

The following section provides financial statement data for the hypothetical ABC Company, which are used to calculate most of the examples of financial ratios in this book.

This chapter includes the following financial statements by ABC Company:

  • Income statement
  • Balance sheet
  • Assets
  • Liabilities & equity
  • Cash flow statements
  • Supplementary information

It should be noted that these are not U.S. GAAP-compliant financial statements inasmuch as they include non-GAAP measures such as EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation, and amortization).

In general, a non-GAAP financial measure is a measure of a company’s performance, financial position, or cash flows that either ...

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