RATIO ANALYSIS
RATIO ANALYSIS
• Profitability
• Efficiency
• Liquidity
• Capital Structure
• Market Performance
– Discuss what each group of ratios measures
– Include table with ratios (see below)
– Discuss the impact on company and how it would affect your investment decision
– Discuss whether good or bad
– Compare with the other company and ‘rules of thumb’ (bonus if also with industry averages).
There’s six examples (see below)
RATIO ANALYSIS
• Profitability
• Efficiency
• Liquidity
• Capital Structure
• Market Performance
– Discuss what each group of ratios measures
– Include table with ratios (see below)
– Discuss the impact on company and how it would affect your investment decision
– Discuss whether good or bad
– Compare with the other company and ‘rules of thumb’ (bonus if also with industry averages).
There’s six examples (see below)