The Profitability, Financing, and Growth of the Firm Goals, relationships, and measurement methods. 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.