Financial Analysis: Yeah, but what is it really all about?

Let’s make clear from the beginning, what we are going to discuss, and what we are not going to.

First of all, this is the list of topics that will not be discussed in this blog:

  • Stock prices
  • Valuations of listed companies
  • Buy or hold or sell suggestions for stocks
  • Generally speaking, anything and everything that is about the stock market
  • All the things that were previously erroneously herded under the title of “Financial Analysis”

Now, here is the list of topics that will be covered in this blog:

  • Investment Plan Evaluation
  • Profitability calculation
  • Sensitivity Analysis
  • Calculation of “What if” scenarios
  • Budgeting
  • Cash Budgeting
  • Product price policy
  • Generally speaking, any forecasted scenario, where the bottom line question is how to calculate “Profit & Loss”

Most of you probably know that already there are thousands of blogs and forums about the topics in the “no fly” list. After the launch of C2BII, I tried to find ones about the topics in the second list, but I couldn’t find a single one. Even though my search was thorough enough for my satisfaction, for reasons of prudence (maybe it’s the Accountant in me that’s speaking), I will stop short of claiming that “” is the world’s first blog that’s specifically devoted to Investment Plan Evaluation, even though it probably is. If you know of any blog that’s specifically devoted to the topics of the second list, please drop me a line.  

Stick around, and we’ll discuss how problematic and inaccurate the state-of-the-art in calculation methods used to be.

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