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RECALCULATING_ WHY WE ARE HARDWIRED TO FAIL FINANCIALLY AND HOW TO OVERCOME IT

Recalculating creates a financial GPS that will guide you around surprise detours on theroad to achieving your financial objectives. <br>https://www.amazon.com/Recalculating-Hardwired-Fail-Financially-Overcome/dp/0998045705

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RECALCULATING_ WHY WE ARE HARDWIRED TO FAIL FINANCIALLY AND HOW TO OVERCOME IT

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  1. ABOUT THE AUTHOR DAVID POTTER David Potter has 25 years of experience in the financial services industry. Past experience involves expertise in business valuation with a National Accounting firm prior to joining one of the leading North American Investment firms where he served as a Senior Vice President in charge of retail operations.

  2. RECALCULATING: WHY WE ARE HARDWIRED TO FAIL FINANCIALLY AND HOW TO OVERCOME IT This book is designed to provide information and motivation to the readers. It is sold with the understanding that the author is not engaged to render any type of psychological, legal, or any other kind of professional advice. The content is the sole expression and opinion of its author. The author shall not be liable for any physical, psychological, emotional, financial, or commercial damages, including but not limited to special, incidental, consequential, or other damages.

  3. NUMBERS GAME: THE BASICS OF FINANCIAL ANALYSIS We will examine the building blocks of a process and provide you with a list of useful ratios and metrics to use during your quarterly recalculating process. These blocks will become the foundation of your tripod process and will be used consistently every quarter for financial review. We will break down each section of the tripod and explain why each ratio is relevant in the recalculation process.

  4. THE TRIPOD You must meet the criteria on every leg to ensure that the tripod supports a purchase or hold decision for each investment.

  5. LEG 1: REVENUE AND EARNINGS Revenue Change: (3 Months Ending DEC 31, 20XX (Current year) / Revenue 3 Months Ending DEC 31, 20XX (Previous year) We use the same calculation for Earnings Per Share growth. Remember that earnings are equal to revenues, less all operating expense incurred by the company.

  6. LEG 2: BALANCE SHEET TESTS Current Ratio: Ability of Company to satisfy short term debts (Current Assets / Current Liabilities = X) Long-term Debt to Equity Ratio: Measure of debt load (Long-term Debt / Equity = X) Payout Ratio: How much of a company’s earning are used for Dividends (Dividend / Net Earnings = X)

  7. LEG 3: VALUATION TEST PEG Ratio: Relationship of PE Ratio to Growth Rate of Earnings (PE Ratio / Expected Five Year Growth Rate = X))

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