check out this presentation on: Analysis of Financial Statements Contents:
Ratio Analysis illustration with Examples
- Ratio analysis
- Du Pont system
- Effects of improving ratios
- Limitations of ratio analysis
- Qualitative factors
Liquidity: Can we make required payments as they fall due?
Asset management: Do we have the right amount of assets for the level of sales?
Debt management: Do we have the right mix of debt and equity?
Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in PM, ROE, and ROA?
Market value: Do investors like what they see as reflected in P/E and M/B ratios?
All these ratios are explained with an Example ....