Guide to analysing companies - The Economist

In today's volatile, complex and fast-moving business world, it can be difficult to gauge how sound a company really is.

An apparently strong balance sheet and impressive reported profits may be hiding all sorts of problems that could even spell bankruptcy.

So how do you: Know whether a company is well run and doing well? Decide which ratios and benchmarks to use to assess performance? Work out if a company has massaged its results? Recognise the danger signs on the corporate horizon? Compare companies operating in different sectors or countries? These and many other important questions are answered in a completely updated and revised sixth edition of this clear and comprehensive guide.

It is aimed at anyone who wants to understand a company's annual report, judge a customer's creditworthiness, assess a company's investment potential, and much more.