Financial sustainability as a small "blood picture" of the company

What is financial sustainability? How can it be measured?  How can it be used for reporting and to improve multi-year planning calculations?

Thomas Günther, Deborah Fuhrmann, Werner Gleissner and Christian Walkshäusl explore these questions in a practice-oriented article in issue 1/2024 of the journal Controlling. Among other things, they show that companies that meet the requirements for the four key figures for measuring financial sustainability, as a kind of "blood picture" of the company, achieve above-average returns on the capital market. Such companies can improve their ESG rating and perform better in times of crisis. Using a fictitious but realistic example of a regional utility company, we show how the four key figures can be used for multi-year planning calculations, stress tests and Monte Carlo simulations.

https://rsw.beck.de/zeitschriften/controlling/das-aktuelle-heft