A Figure Without Methodology Is Not Information

#business #croatia

A financial indicator published without a clear explanation of how it was calculated is worth less than it appears at first glance.

Publishing a key financial indicator without an accompanying explanation of the calculation methodology leaves room for differing interpretations and, ultimately, reduces the credibility of the figure itself, however accurate it may be on its own.

When a short explanation of the data source and calculation method accompanies each key indicator, the reader is able to judge the reliability of the information rather than simply taking it on faith.

This commentary is part of the GNK ASG Intelligence Desk system and is informational in nature.