Financial Ratios by CIMA
How to use financial ratios to maximise value and success for your business by “RICHARD BULL”
A key element in the difference between success and failure in business start-ups is the ability of entrepreneurs to come to grips
with the financial aspects of the business. Relatively few companies are started by accountants, and the sorts of people who have
entrepreneurial drive are unlikely to regard financial ratios as an absorbing subject.
Hence it is important that books on the subject should be eminently readable and present the necessary information in such a way as to give it a ‘story line’.
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This Richard Bull’s book does extremely well, putting ratios in the context of the successive stages of building a business, from the
original idea, through the formulation of strategy to the realisation of added value. He concludes by looking at financial ratios from
the perspectives of the different stakeholders – the customers, the employees, the suppliers, the community and the shareholders.
The author does remind us, however, of the dangers inherent in measuring business success through financial ratios alone.
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I would strongly recommend this work as essential reading, not only for budding entrepreneurs, but for all those from non-financial backgrounds whose career paths take them into jobs that carry profit responsibility. It will also be of value to business studies students as a ‘crammer’.