Accounting measures are traditionally considered not significant from an economic point of view. In particular, accounting rates of return are often regarded economically meaningless or, at the very best, poor surrogates for the IRR, which is held to be “the” economic yield. Likewise,...

Accounting measures are traditionally matched against economic measures. For example, accounting rates of return (ARR) are usually considered poor surrogates of the “economic rate of return” and the residual income is sometimes criticized as being periodically inconsistent with the net...

Cuando se proyectan estados financieros hay que tener cuidado de construir un modeloconsistente y correcto. Esto no es una tarea fácil. Incluso el experto en modelaje másexperimentado puede incurrir en equivocaciones. Esto es especialmente relevante cuandose construye un modelo financiero sin...

In this work we show a simplified financial planning model. In reality, financial planning models are huge and cumbersome. This is a very simplified model compared with what is found in practice.We present some basic principles for constructing the financial statements needed for valuation. We...

This is a course material (slides in pdf format) for Financial Analysis and Control already in SSRN. In these slides I present a detailed explanation of different tools commonly used in financial management and specifically Working Capital Management. We introduce some examples in the slides and...

In this teaching note the reader finds a simplified financial model. In reality, financial models are huge and cumbersome. What we present is very simplified model in comparison to what is found in practice. We indicate the formulas that have to be utilized in the construction of the financial...

This is a teaching material for a module of Financial analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from...

This is a course material (slides in pdf format) for Financial Analysis and Control already in SSRN. In these slides I present a detailed explanation of different measurements of leverage commonly used in financial management. We introduce some examples in the slides and they serve more as quick...

This is a teaching material for a module of Financial Analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from...