The Handbook of Financial Analysis, Forecasting and Modeling is a practical guide of proven techniques, strategies, and approaches that are successfully used by professionals who diagnose and manage the financial and operating health of businesses. It illustrates and explains the time-tested techniques that help analyze financial decisions. The book explains what financial tools and techniques to use and how to apply them. Computational examples and illustration guide the reader through each presentation. Proven checklists, ratios, formulas and statistical techniques are clearly presented to help the reader to make smart decisions in all areas of financial management and operations. Part One provides guidelines for evaluating a company's financial health. This part maps out the fundamental financial principles used in analyzing margins, break-even, investment proposals, operating performance and more. Part Two supplies management and financing techniques to derive the best financial position and rate of return. It looks at evaluating business segments, analyzing cash, analyzing accounts receivable, inventory control and planning, investment finance, financing a business and M&A analysis. Part Three provides strategies and techniques for short- and long-term forecasting and budgeting.I looks at forecasting methods, models and means plus budgeting. Part Four provides the techniques necessary for financial modeling. This part looks financial models such as planning models, business simulation and budgeting. Modeling languages, management games (as teaching tools), corporate valuations, and security valuation are also covered. Highlights of the new Third Edition: New expanded discussion covers nonfinancial performance measures, economic value added in the context of evaluating business segments, cash models to provide maximum return, new on-line tool for the Black-Scholes Option Pricing Model, capital asset pricing model and arbitrage pricing model, CPA's inv