The purpose of this book is to describe and explain the concepts, measures and relationships which are fundamental to the process of setting financial goals and controlling the fulfilment of these goals at various levels of management responsibilities. The book describes how rates of return on assets, capital employed and shareholders equity are measured; how the relationship among these measures is dependent upon how the operation is financed; how the financial capacity to grow can be analysed; and how the ratios can be linked to cash-flow and equity valuation; all within a comprehensive system of financial ratios. The book focuses on the use of accounting information and is essential reading for students and academics in accounting and finance. It is also valuable for professionals (CFOs, controllers, accountants, managers, etc.) This classic book on financial statement analysis, first published in 1987, is in our mind the best Swedish text book in business administration ever. It is easy to be impressed by how much knowledge the authors have managed to include... Complicated relationships are explained in a pedagogical way.