After analyzing hundreds of companies across
various sectors, I've learned that the most
valuable insights come from asking the right
questions rather than just calculating the
right ratios. The key is developing a
framework that adapts to different business
models while maintaining consistency in your
approach.
Context is Everything
A ratio by itself tells you nothing.
Understanding the industry dynamics,
economic cycle, and company strategy is
crucial for meaningful analysis.
Quality Over Quantity
Focus on the metrics that matter most
for each business model. A tech company
and a utility require completely
different analytical approaches.
Trend Analysis
Single-period analysis can be
misleading. Look for patterns over 5-7
years to understand the true trajectory
of a business.
Management Quality
Numbers tell the story of the past, but
management quality determines the
future. Learn to read between the lines
of annual reports.
"The best analysts I know aren't the ones
who can calculate the most ratios—they're
the ones who can spot the story behind the
numbers and understand what it means for
the future."
— Sarah Chen, on developing analytical
expertise
This philosophy shapes everything we teach in
our programs. We don't just show you how to
calculate financial ratios—we help you
develop the judgment to know which ratios
matter, when they matter, and how to
interpret them in context. That's the
difference between following a formula and
truly understanding a business.