1. Introduction
Section outline
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Welcome to "Financial Analysis for Managers!" The ultimate purpose of Financial Analysis is to make performance comparable—over time and across companies. This introductory section motivates the topic and provides a brief overview of the structure of the module.
The main learning goals of this module are:
- Learn how to read and analyze financial statements and how to tell the "financial story" of a company.
- Conduct quick health checks using financial ratios.
- Understand the strengths and limitations of financial ratios.
- Know the main determinants of Return on Equity (ROE).
- Build the foundations for key financial decisions.