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Cover; Title Page; Copyright Page; Contents; Acknowledgements; Preface; 1 Introduction; 1.1 Importance and development of business accountancy; 1.1.1 Limited significance of financial statements; 1.1.2 Special features of the financial sector; 1.2 Composition and structure of financial statements; 1.2.1 Income statement; 1.2.2 Balance sheet; 1.2.3 Cash flow statement; 1.2.4 Statement of changes in equity; 1.2.5 Notes; 2 Key Ratios for Return and Profitability; 2.1 Return on equity; 2.2 Net profit margin; 2.3 EBIT/EBITDA margin; 2.4 Asset turnover; 2.5 Return on assets |
2.6 Return on capital employed 2.7 Operating cash flow margin; 3 Ratios for Financial Stability; 3.1 Equity ratio; 3.2 Gearing; 3.3 Dynamic gearing ratio; 3.4 Net debt/EBITDA; 3.5 Capex ratio; 3.6 Asset depreciation ratio; 3.7 Productive asset investment ratio; 3.8 Cash burn rate; 3.9 Current and non-current assets to total assets ratio; 3.10 Equity to fixed assets ratio and equity and long-term liabilities to fixed assets ratio; 3.11 Goodwill ratio; 4 Ratios for Working Capital Management; 4.1 Days sales outstanding and days payables outstanding; 4.2 Cash ratio; 4.3 Quick ratio |
4.4 Current ratio/working capital ratio 4.5 Inventory intensity; 4.6 Inventory turnover; 4.7 Cash conversion cycle; 4.8 Ratios for order backlog and order intake; 5 Business Model Analysis; 5.1 Circle of competence; 5.2 Characteristics; 5.3 Framework conditions; 5.4 Information procurement; 5.5 Industry and business analysis; 5.6 SWOT analysis; 5.7 Boston Consulting Group (BCG) analysis; 5.8 Competitive strategy; 5.9 Management; 6 Profit Distribution Policy; 6.1 Dividend; 6.2 Share buyback; 6.3 Conclusion; 7 Valuation Ratios; 7.1 Price-to-earnings ratio; 7.2 Price-to-book ratio |
7.3 Price-to-cash flow ratio 7.4 Price-to-sales ratio; 7.5 Enterprise value approach; 7.6 EV/EBITDA; 7.7 EV/EBIT; 7.8 EV/FCF; 7.9 EV/sales; 8 Company Valuation; 8.1 Discounted cash flow model; 8.1.1 Equity approach; 8.1.2 Entity approach; 8.1.3 Adjusted-present-value (APV) approach; 8.1.4 Operating and financial leverage; 8.1.5 Alternative use of DCF models; 8.1.6 DCF case studies; 8.2 Valuation using multiples; 8.2.1 Fair price-to-earnings ratio; 8.2.2 Fair price-to-book ratio; 8.2.3 Fair price-to-sales ratio; 8.2.4 Fair enterprise value-to-EBIT ratio; 8.2.5 Fair EV/sales |
8.2.6 Multiple valuation: mathematical background 8.2.7 Liquidation approach/net-asset-value approach; 8.3 Financial statement adjustments; 8.3.1 Pro-forma statements and one-off effects; 8.4 Overview of the valuation methods; 9 Value Investing; 9.1 Margin of safety approach; 9.2 Value investing strategies; 9.2.1 Quality investments; 9.2.2 Cigarbutt investments; 9.2.3 Net-nets/arbitrage; 9.3 The identification of investment opportunities; 9.4 Portfolio management; 9.4.1 Diversification; 9.4.2 Risk; 9.4.3 Cash; 9.5 Buying and selling: investment horizon; 9.5.1 Buying; 9.5.2 Selling |
9.6 Conclusion |