In my articles on the changing role of finance, competitive analysis using financial data perhaps is one area where finance personnel can make a good contribution. This is in line with the SWOT (Strength, Weaknesses, Opportunities and threats) analysis where we scan outside for information to form certain decisions. Sun Tzu’ theory also states that […]

Reported in The Star (10/6/06):
“In the article on second board public listed company, an information communication technology company FSBM is brought to the scrutiny of the public investors somewhere in the month of May 2006 where word got around in the market that its net tangible assets (NTA) per share stood at RM2, against its […]

Sometimes, the financial executive might be confused over the word “free” cash flow. Some might consider this merely as the net cash flow after deducting all cash flow /expenses.

Basically, the formula for free cash flow is :

Cash flows from Operations
minus
Cash flows from Investing

It measures a company’s net cash flows after deducing […]

We have heard the word “Overtrading” used by bankers, credit rating organization and analysts. It’s therefore important to understand what is Overtrading, how it is cause and what serious repercussions will happen and as financial executive what we can do.
So what is Overtrading?
In simple word, it denotes a condition in which the resources in […]

Price-Earnings-Ratio is a very useful ratio. This article on P/E ratio attempts to explain
the following:

The definition and formulae,

Salient points noted in the interpretation of P/E ratio,

Are there any limitation of using P/E ratio,

An illustration of using P/E ratio in the same industry,

Using Prospective P/E ratio to test for future profit

P/E ratio as a method or […]