<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> ecofine - The Key Ratios Analysis

ECOFINE.COM

Integrated Knowledge

Strategy Operations Cash management About us Knowledge area

Corporate Governance
What is Strategy ?
The Strategic Management Process (graph)

The 5 tasks of Strategic Management process:
1 Defining the business & developing a vision and a mission
2. Setting objectives
3. Crafting a strategy to achieve performance objectives
4. Implementing & executing the strategy
5. Evaluating performances, reviewing the situation & initiating corrective adjustments

The strategic decisions

 

Strategic decisions & Working Capital (WC)

The mean of a positive WC
How interpret a negative WC
The SCFP & Strategic Decisions

 

Investment decisions
Capex

 

Modes of diversification :
Mergers & Acquisitions

 

Inter-Organizational relationships :
Strategic Alliances
Joint Venture
Licensing

 

Others :

Corporate new venture (self development)
Divestiture & Liquidation strategies

 

Long-Term Financial decisions
Bonds market
leasing
Stocks market & Dividend Policy
Optimal financial structure

 

Investment analysis and decision
The opportunity cost of capital
Pay-back, IRR, NPV : what to choose ?
The WACC
The NPV
The EVA
The key Ratios analysis 
 
Company valuation

Key elements for financial analysis

Investments (asset)

Asset Turnover
Debts (bonds)

Interest coverage

Total coverage

Cost of debt (see bonds)
Equity

ROE
Capital Structure

D/E ratio

Leverage factor (see ROE)

WACC
Stock market & Dividend policy

Stock price

Bêta : a mesure of the risk

Return on Stock : CAPM Model

Return on Stock : Growth Model
Self-financing policy & Growth