FMP
Dec 4, 2023 5:54 AM - Parth Sanghvi
Ratio analysis is a powerful tool in financial analysis, providing insights into a company's performance. This guide will explore the application of ratio analysis through diverse case studies, showcasing its significance and practical implications in decision-making.
Ratio analysis involves the examination of various financial ratios to evaluate a company's financial health, performance, and operational efficiency. Key ratios include liquidity, profitability, solvency, and efficiency ratios.
Real-life case studies offer practical demonstrations of how ratio analysis influences decision-making and provides actionable insights for investors, analysts, and businesses.
Liquidity Ratio Impact on Small Business:
Profitability Ratios in Tech Companies:
Solvency Ratio Impact in the Retail Sector:
Efficiency Ratios and Manufacturing Operations:
Valuation Ratios in Investment Decisions:
Holistic Evaluation: How combining multiple ratios provides a comprehensive view of a company's performance.
Industry Benchmarking: The significance of benchmarking ratios against industry averages for accurate comparative analysis.
Impact on Decision-making: How ratio analysis influences investment, strategic, and operational decisions.
Continuous Monitoring: Regularly reviewing ratios to detect trends and identify areas needing improvement.
Predictive Analysis: Using historical data from ratios to forecast future performance and trends.
Ratio analysis case studies provide actionable insights and practical applications for businesses and investors. Learning from these real-life examples empowers stakeholders to make informed decisions based on a thorough understanding of financial ratios.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...