FINANCIAL ANALYSIS, FORECASTING, AND VALUE

Chapter 1 Introduction: Accounting Basics
Chapter 2 Financial Statements
Chapter 3 Financial Statements Reclassification
Chapter 4 Tools of Financial Statement Analysis
Chapter 5 Earnings Quality
Chapter 6 Forecasting Performance and Prospective Financial Information
Chapter 7 Valuation

Financial Statement Analysis (FSA) and firms' valuation are essential tools for investors, analysts, and stakeholders, enabling them to assess profitability, risk, and future performance of companies. These processes play a central role in capital market functioning and the broader economy. Accurate and impartial analysis creates value for society, while careless or opaque analysis can generate severe losses in financial markets. FSA distinguishes itself from other approaches by relying on publicly available information – an external perspective – to support decisions rather than speculation. The ultimate outcome of FSA is an investment recommendation (buy, hold, or sell), a credit decision, or internal performance evaluation. The book provides a gradual and structured approach to understanding and analyzing financial statements; it does not aim to be exhaustive but serves as a practical guide for those seeking a deeper understanding of firms' financials and valuation techniques.


Antonio Marra, Ph.D. is Full Professor of Accounting and Financial Management, and Department Chair of the Accounting Department at Bocconi University.