Techniques of Financial Analysis with Financial Genome Passcode Card - Softcover

Helfert, Erich

Softcover

ISBN 10: 0072826320 ISBN 13: 9780072826326

Publisher: McGraw-Hill Education, 2002

Synopsis

The unique, central concept of Techniques of Financial Analysis is the “business system,” an effective and intuitive way of visualizing the key areas of the typical business organization, and the related investment, operating, and financing decisions that drive its performance and value. This cash flow model (see Chapter 1) serves as the basic structure to which all analytical concepts and tools are related, so that the student is always aware of the larger operational and strategic context in which these techniques should be applied to properly understand the process of successful value creation in a business. Such contextual insight is critical in a specialized subject like financial analysis, which is generally taught in a dry, accounting-oriented fashion.The presentation has always been kept up to date and is carefully designed to help the reader visualize the linkage between management decisions and financial performance and value. Very importantly, the book demonstrates the modern requirement to distinguish between cash flow (economic) and accounting-based analysis. It helps the reader to interpret financial reports, develop integrated financial projections, understand basic financial modeling, evaluate business investment decisions, develop the implications of financing choices, derive the value of a business or a security, and understand the support role of economic analysis in achieving shareholder value creation. Every technique and measure is described and demonstrated in the context of the underlying key financial and economic concepts, but without delving into theoretical abstraction.

About this title

From the Publisher:

Templates and graphic displays for interactive analysis of the 'Business System' in Chapter 1, the growth models of Chapter 5, and business investment analysis layouts in Chapter 7 accompany the Financial Genome software. These are excellent learning devices.
Wherever appropriate, analytical displays in the text are designed in spreadsheet format, with helpful hints for use of built-in formulas. This should ease the mechanical aspects of learning, and the several analytical templates available with Financial Genome are a further aid in ensuring consistency in the approach to problems.
References to sources of financial information are now provided mostly in web site format, contained in the revised Appendix III. In prior editions, this appendix was strictly textual. This redirection of emphasis ties in very well with the growing student comfort with the Internet.
Concepts and techniques have been updated throughout, with even greater emphasis on cash flow analysis and on which measures related to value creation. Additional. Diagrams and overviews have been provided. All chapters have been updated, revised and at least in part, rewritten.
End-of-chapter materials have been revised and expanded, ranging from simple examples to integrated problems appropriate for use with Financial Genome.
This best-selling book with over one-half million copies in eight languages sold remains one of the most popular practical guides to managing and measuring business performance, both for students at the undergraduate and graduate levels and for practicing managers. Its appeal is clarity, selectivity in the topics that matter, and a sense of reality based on the author'' wide experience in the academic, corporate, and consulting arenas.
It is useful for developing a cash flow perspective, understanding the business as a total system, understanding business decisions as economic trade-offs, understanding financial statements and their implications, and relating analyses and decisions to value creation.
The clear and concise writing style has been maintained, which has always been hailed as one of the key features of the book.
The careful balance between practical and applied financial analysis on the one hand, and more theoretical refinements and /or areas under learned dispute has been maintained. Theory is brought in as a supporting element, not as a main focus, as befits a book on the application of financial techniques. The practical appeal of the book remains strong, with enough links to theory and appropriate references to make it attractive to the student of any level.
All subjects are carefully related to the business systems concept, with creation of shareholder value seen as the ultimate goal of investment, operating and financial decisions. The framework reinforces the text's practical nature. Illustrative examples are based on a single company (TRW, Inc.) in the early chapters, so that the results of the analytical techniques build into a complete picture C not unlike a case discussion. The company is introduced early on and its database employed in several chapters.
Shareholder value and value-based management have been given even more emphasis than ever before. The previous final chapter on valuation was split into two chapters, the former dealing with value concepts and basic techniques, while the new Chapter 11 was dedicated to value-based management, the more common techniques used, and the need to integrate financial analysis, measures, and the key elements of strategic, operational and financial management into a consistent framework.
Financial Genome (0072362758), a unique Excel add-in for easing and speeding financial analysis, is made available to students at a nominal cost when packaged with Helfert. This knowledge-based professional software enables students to create a wide range of past and projected financial statements as well as to perform free-form analyses on data loaded from spreadsheets or entered manually, as desired. Financial Genome ensures consistency due to its meaning of results. The learning experience is further enhanced by a detailed internal help system, which clearly displays formulas and relationships at will, allowing students to check and improve understanding the analysis proceeds. Financial Genome contains selected databases that link to the text materials and to appropriate end-of-chapter problems in the 10th edition of Helfert. Information on the program's capabilities and instructions of how to use it with Helfert are contained in the new Appendix I.

About the Author:

Erich A. Helfert (San Mateo, CA) is an internationally recognized management consultant in corporate finance, strategic planning, and executive education in financial/economic decision making and shareholder value creation. Dr. Helfert is chairman and co-founder of Modernsoft, Inc., San Mateo, CA, developers of Financial Genome, advanced interactive financial analysis and business modeling software, which is complementary to Techniques of Financial Analysis.

About this edition

• Publisher: McGraw-Hill Education
• Publication date: 2002
• ISBN 10: 0072826320
• ISBN 13: 9780072826326
• Binding: Paperback
• Number of pages: 480