RE: 14-02-2026 - Management Control Systems - Functional Reclassification [EN]-[IT]
You are viewing a single comment's thread:
I so much love and admire the way you are actually able to break this down for us so detailed
0
0
0.000
Hi Sammy, thanks for your kind words. Functional reclassification is quite important. It serves to:
-measure the truly "costly" Invested Capital (i.e., the amount that requires coverage from equity and debt);
-understand the source of operating financing needs (receivables, inventories, deferred payments);
-provide the correct basis for profitability analyses such as ROI.
It's probably difficult for people who haven't studied economics to understand a functional reclassification, but it's not difficult to understand how important reading this data is for understanding a company's health.
!PIZZA