The purpose of this book is to describe and explain the concepts, measures, and relationships which are fundamental to the process of setting financial goals and controlling the fulfilment of these goals at various levels of management responsibility.The book describes how rates of return on assets, capital employed and stockholders’ equity are measured; how the relationships among these measures are dependent upon the method by which operations are financed; and how the financial capacity to grow can be analyzed within a comprehensive financial goal system.The reader should be familiar with basic accounting concepts. The book focuses, however, on the use rather than the preparation of accounting information.”…The work of Professor Johansson, which I have followed for three decades, has had a major impact on the development of financial reporting of Swedish companies and on financial analysis made by investors and other stakeholders. This is a major reason why Swedish Financial Reports are among the best in the world according to international evaluations. The models described in the book have been developed from the author’s extensive experience from research and practice in Europe as well as in the United States, thereby being of a nature that can create global interest and acceptance. Needless to say the models are also very useful tools for the financial management of businesses…”Mr Göran Tidström, Vice presidentFédération des Experts Comptables EuropéensThe book is essential reading for students and academics in the fields of accounting and finance. It is also valuable for professionals (business administrators, accountants, managers, etc.).