Category Archives: Financial analysis

Risk parity is a strategy to reduce portfolio variability. The volatility of each potential portfolio asset is assessed. Then the portfolio is constructed to achieve the overall portfolio volatility target. Leverage may be used to enhance the contribution of a … Continue reading →

A country’s economic growth has less of an affect on share market performance as many think. These factors influence share market performance more: Inflation expectations Currency exchange rates Bond yields What the central bank does.      

Cash flow Start with the cash-flow statement. Use it to work out the free cash flow. This is the cash available to shareholders after the company has used the cash required for its business needs. Free cash flow is the … Continue reading →

What do the financial results tell you about the business?   Financial analysis tries to make sense of the data. Strategic Focus is a software tool that does Financial analysis for you.