Turning vision into value:Corporate finance for non-financial execu...
Turning vision into value:Corporate finance for non-financial executives (E-Book)
Description
Turning vision into value explains financial and accounting information to managers who have no prior knowledge of the subject. The central theme of the book is the measurement and creation of economic value in an organisation. Starting with a clear explanation of the core accounting principles, the book examines the measures of economic value, with particular emphasis on Return on Net Assets (RONA) and Return on Equity (ROE). It explains why these two measures are important and expounds the underlying levers that drive RONA and ROE in the structured framework known as the DuPont model. The matrix of performance measures is then extended to include the concept of sustainable growth. Since growth is such a significant factor in creating value, considerable attention is given to understanding the consequences of too much or too little growth in a business. The final section of the book integrates the earlier material into an understanding of corporate valuation.