RATIO ANALYSIS: USING
FINANCIAL RATIOS
There is a lot to be said for
valuing a company, it is no easy task. If you have yet to discover this
goldmine, the satisfaction one gets from tearing apart a companies financial
statements and analyzing it on a whole different level is great - especially if
you make or save yourself money for your efforts.
In this section we will try to
present 19 basic fundamental analysis ratios to help you get started. The ratios are
presented in a simplified manner to make them easier to understand. Sure some
of the ratios have different varieties, but by the end you will understand the
basic premise and reasons for fundamental analysis.
The Ratios:
Performance
|
Activity
|
Book Value Per Common Share
|
Asset Turnover
|
Cash Return On Assets
|
Average Collection Period
|
Vertical Analysis
|
Inventory Turnover
|
Dividend Payout Ratio
|
Financing
|
Earnings Per Share
|
Debt Ratio
|
Gross Profit Margin
|
Debt / Equity Ratio
|
Price/Earnings Ratio
|
Liquidity Warnings
|
Profit Margin
|
Acid-Test Ratio
|
Return on Assets
|
Interest Coverage
|
Return on Equity
|
Working Capital
|
No comments:
Post a Comment