A ppt on : Analysis of Financial Statements
Du Pont system
Effects of improving ratios
Limitations of ratio analysis
Qualitative factorsRatio Analysis
illustration with Examples
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 ....