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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

Efficiency ratio The efficiency ratio measures effective cost management and operational efficiency, and is defined as non-interest expenses divided by revenue. Total shareholder return (TSR) TSR is often considered the ultimate measure of shareholder value, and the outcome of delivering against the financial targets.

Metrics 88
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Bank Profitability: Decoding the Income Statement

Tom Spencer

A bank’s income statement can be simplified into five main line items: Net interest income Non-interest income Operating expenses Provision for credit losses (PCL) Tax Image 1: Illustrative example of a bank’s income statement Source: CIBC’s 2022 Annual Report 1. The biggest swing in operating expenses is likely to be variable compensation.

Banking 88
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Unlocking Business Profit Potential

Business Consulting Agency

In this article, we’ll outline the essential steps to increase profits with the help of consulting services and emphasize the pivotal role of business consulting agencies in achieving financial success. Review income statements, balance sheets, and cash flow to identify areas that impact profitability.

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Boosting Business Profitability

Business Consulting Agency

These services offer a wealth of expertise, strategies, and solutions aimed at increasing profitability. We’ll explore the myriad benefits of working with these experts and how their guidance can lead to improved financial performance. This includes scrutinizing income statements, balance sheets, and cash flow statements.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm? In the 2016 book The End of Accounting , NYU Stern Professor Baruch Lev claimed that over the last 100 years or so, financial reports have become less useful in capital market decisions.

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Overcoming Data Collection Challenges in Consulting

Tom Spencer

I was assigned to a typical strategy engagement – should client X selling product Y increase sales in market Z? Our analysis was impossible without extensive internal data and financial statements. We repeated our request a week later, but they only provided a balance sheet from the previous year.

Data 78
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M&A deals – benefits and drawbacks

Tom Spencer

Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study. Depending on the firm and specific role this case could be very strategic and operational like doing a market entry/growth-type case or very technical (i.e. Potential Drawbacks. Conclusion.