If you have a company Consolidated P&L with X gross revenues of which a percentage coming from joint ventures, you would base your ratio analysis on: - the gross revenues (EXCLUDING the revenues coming from joint ventures) or - the gross revenues (INCLUDING the revenues coming from joint ventures) I think that assuming a conservative view, we should consider the gross revenues excluding the one coming from joint ventures. What do you guys think?
Anyone can help on this?
That really depends on your point of departure. If I am doing a ratio analysis as part of a valuation I would only focus on the target entity and not the group. If however, I am working on a strategy plan or presentation, then I would go for both, irrespective of what my brief was. This is because the difference in results between the group and the individual entity could also be of strategic importance.
cfaBANANA Wrote: ------------------------------------------------------- > That really depends on your point of departure. If > I am doing a ratio analysis as part of a valuation > I would only focus on the target entity and not > the group. If however, I am working on a strategy > plan or presentation, then I would go for both, > irrespective of what my brief was. This is because > the difference in results between the group and > the individual entity could also be of strategic > importance. Thanks a lot cfaBanana!