Financial statement analysis is useful to anticipate future conditions and, most important, as a starting point for developing strategies that influence a company's future course of business.
An important step toward achieving these goals is to analyze the firm's financial ratios. Ratios are designed to highlight relationships between the financial statement accounts. These relationships begin to reveal how well a company is doing in its primary goal of creating value for its shareholders.
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The “what if” dimension means that in case the new idea works out well, then the company might have significant value; otherwise, it will not.
For example, considering a mining company, in case explorations are successful, then the company will be valuable; if on the other hand explorations are not successful then the company might not even be surviving.
This is exactly how options work and we can use the same option pricing theory to value such real-world cases.