“While good at engineering balance sheets, they are poor at engineering products and innovations. Is this true? The world is about to find out.” says Rich Karlgaard, Forbes
Back in May 2019, the market told us what Thomas Cook accountant’s and financial reports were not prepared to say, “According to Citigroup, Thomas Cook’s tour operations and airline are worth £738m, but its debt is around the same “and implies zero equity value”.
It was effectively worthless, and so were the financial reports that went with the “material uncertainty” statement and £1.5bn half year loss.
So is this the death knell for traditional financial reporting, or do we carry on regardless?
McKinsey defines four kinds of CFO. Not all of them, in the modern world, are particularly helpful, but they’re definitely out there. You may have come across a few of them in your own rise to CFO. You may even be one of them.
Here are the four kinds of CFO commonly found in business. Do you recognise yourself in any of these?