Techniques of Financial Analysis with Financial Genome Passcode Card, 11th Edition

Techniques of Financial Analysis with Financial Genome Passcode Card, 11th Edition

The 11th Edition and classic text since 1963 on analyzing financial statements and an organization's "business system".

Erich A. Helfert
480 pages
July 2002

From the Publisher:
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.

Table of Contents

  1. A Systems Context for Financial Management
  2. Managing Operating Funds
  3. Assessment of Business Performance
  4. Projection of Financial Requirements
  5. Dynamics and Growth of the Business System
  6. Cash Flows and the Time Value of Money
  7. Analysis of Investment Decisions
  8. Cost of Capital and Business Decisions
  9. Analysis of Financial Choices
  10. Valuation and Business Performance
  11. Managing for Shareholder Value
  • Appendix I: Financial Analysis with Financial Genome
  • Appendix II: Glossary of Key Terms and Concepts
  • Appendix III: Financial Information and Online Sources
  • Appendix: IV: Basic Inflation Concepts
  • Appendix V: Some International Issues in Financial Analysis

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.