CONCLUSION

security.

You will have realised that we can evaluate any organisation's financial statements using these three approaches without knowing the organisation's name, industry, strategy or anything else about its operation except what we have seen from the financial statements.

Of course, it helps to know these things but they are not essential to our initial analysis. The figures will tell a story. However, once we get into management recommendations and business planning, etc., we will have to become more familiar with these other aspects.

Knowing this should give you a feeling of confidence and a starting point for learning about any business whether you are a prospective investor, employee or new chief executive. There is undoubtedly a tremendous source of authority in understanding financial management.

Copyright © Bill Wright 1994