A poll of more than 1200 senior finance executives by CFO Europe together with Tilburg and Duke University ranks the ten top external and internal concerns. High in all regions we find as external concerns; consumer demand, interest rates, currency volatility and competition.
A good metric should have a low probability of rejecting a true hypothesis of bankruptcy (false positive) and a high probability of rejecting a false hypothesis of bankruptcy (false negative).
The Z-score formula for predicting bankruptcy was developed by E. Altman. The score is not intended to predict when a firm will file for bankruptcy, It is a measure of how closely a firm resembles other firms that have filed for bankruptcy.
Historic growth is usually a risky estimate for future growth. To be able to forecast a company’s future performance you have to make assumptions on the future most likely values ….
The weighted cost of capital and the return on invested capital are the most important elements in company valuation, and the basis for most strategy and performance evaluation methods …
All businesses need the ability to, if not predict the future; assess what its future economic performance can be …