Evaluating Company Growth By Excluding The Earnings Report

Abstract

For most financial analyst, the challenge of evaluating growth for a company is multifaceted.  The first one has to do with the understanding the trajectory of the growth.  In most cases, the growth is evaluated by using the income statement, debt ratio, balance sheet, market share, general market condition, and product cycle (Gibson, 2009; Gitman, 2009).  The growth trajectory can also be traced by looking at the management strategies (Mayo, 2007).  In this case, none of the numbers in traditional calculations is taken into account and the conclusion on the growth trajectory is estimated simply by evaluating management strategies.  In this paper, the authors demonstrate that ignoring traditional calculations is realistic and applicable in evaluating many companies on the way to recovery.