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Chapter
Financial analysis andperformance indicators
DOI link for Financial analysis andperformance indicators
Financial analysis andperformance indicators book
Financial analysis andperformance indicators
DOI link for Financial analysis andperformance indicators
Financial analysis andperformance indicators book
ABSTRACT
The ability to measure performance and make sense of an organization’s financial situation is an important part of strategic analysis. In order to carry out a financial analysis of a company’s situation or of an industry, it is necessary to understand some of the fundamentals of finance and its sources. This chapter begins with a discussion of the
sources of corporate finance and then goes on to discuss the costs of the various types of capital. This information helps students to make sense of a company’s financial structure before the tools of conventional financial analysis are discussed. The various ‘tools’ for financial analysis are introduced. Finally, the concept of benchmarking is explained and its use in analysis is discussed.