The book starts in Part
I with a short and eclectic history of financial analysis leading to
the chaos that characterizes the state of financial analysis today.
It is followed by a condensed summary of the main themes of this
We introduce the
principles of unified analysis and important concepts such as the
natural and investment time horizons, input and analysis elements
emerge. We also draw an important distinction between static and
dynamic types of analysis.
Static analysis, or more
accurately liquidation view analysis, is based on the assumption
that all current assets and liabilities can be sold at current
market conditions without taking the evolution of future business
into account. This restriction is removed in the dynamic, or
going-concern, analysis where new business is also considered.
The concepts introduced
in the second chapter are further developed in part II where input
elements are discussed, part III which deals with analytical
elements from a liquidation view perspective and part IV which
addresses them from a going-concern perspective.
Finally, part V
demonstrates the completeness of the system showing that all known
types of financial analyses are covered and offers a solution for
the current information chaos not only for individual banks and
insurances but also from a global and especially regulatory