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Corporate financials
 Strategic planning teams need to understand the corporate issues to put their task in perspective.
On
the stretch side, let's refine CAPEX: what is the incremental cost of
CAPital EXpenditures, either working
capital (inventory, accounts payable and
accounts receivable)
or infrastructure for new customers or for new products.
On the sustainability side, let's worry about going out or business:
what is the risk of bankruptcy. Professor Edward I. Altman at NYU developed
a
bankruptcy
indicator
called
"Altman's
Z" to provide advance warning (links
to read more): solvency, profitability, return on assets
and solvency.
Restated: as you do business can you pay your bills; make enough profit
to put some away; efficiently use your assets; and do you assets have
enough value to cover your debts -- will folks lend you money again?
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