{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Financial Analysis

Financial Analysis - Financial Analysis Financial analysis...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Analysis
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Financial analysis can tell whether a firm has a  sustainable competitive advantage by comparing  the firm’s performance to the industry.
Background image of page 2
Financial Ratios –  Key ratios  Liquidity, profitability, activity, leverage Comparisons to history, industry, competitors Trends –  Graph sales, profits, gross margin, expenses, debt,  ROI, etc. Look for changes over time both gradual and  sudden Ratio Analysis & Trend Analysis
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Cash flow from operations should  exceed   net  income One time circumstances that account for  earnings/profit Accounts receivable should not grow faster than  sales Special risks (e.g. a big customer or supplier) Gross margins should not fluctuate over time High debt Watch for Unique Situations
Background image of page 4
Top management ownership Information about top management and the board  (e.g. membership, relationships)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

Financial Analysis - Financial Analysis Financial analysis...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online