After the post-2008 global financial crisis, people are much more interested in
knowing more about human capital as a key indicator of future value in firms.
Investors increasingly need to see early warning signs of failure or growth
prospects in their investments. For bankers, lending proposals are either
accepted or rejected on the basis of set financial ratios, such as debt to
equity and loan to valuation.
Do these ratios tell the real story of the value which is being created, or
destroyed, within a company? Is it dangerous for investors to rely on
quantitative measures alone?