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  • Fundamental Analysis

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    shannen
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    Fundamental analysis involves evaluating a company's financial statements including the income statement, balance sheet, and cash flow statement. It also examines economic, industry, and company information. Ratio analysis is used to analyze a company's liquidity, profitability, solvency, leverage, efficiency, and ratios relevant to equity shareholders. Key ratios include the current ratio, quick ratio, gross profit ratio, operating profit ratio, and earnings per share.

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    the financial ratios

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    Fundamental analysis involves evaluating a company's financial statements including the income statement, balance sheet, and cash flow statement. It also examines economic, industry, and company information. Ratio analysis is used to analyze a company's liquidity, profitability, solvency, leverage, efficiency, and ratios relevant to equity shareholders. Key ratios include the current ratio, quick ratio, gross profit ratio, operating profit ratio, and earnings per share.

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    14 views8 pages

    Fundamental Analysis

    Uploaded by

    shannen
    Fundamental analysis involves evaluating a company's financial statements including the income statement, balance sheet, and cash flow statement. It also examines economic, industry, and company information. Ratio analysis is used to analyze a company's liquidity, profitability, solvency, leverage, efficiency, and ratios relevant to equity shareholders. Key ratios include the current ratio, quick ratio, gross profit ratio, operating profit ratio, and earnings per share.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 8

    FUNDAMENTAL ANALYSIS

    COMPONENTS

    Economic analysis
    Industrial analysis
    Company analysis
    Ratio analysis
    Financial statement analysis

    TYPES OF FINANCIAL STATEMENT

    Income statement
    Balance sheet
    Cash flow statement
    Comparative statement
    Common size statement
    Trend analysis

    RATIO ANALYSIS
    Types of ratio analysis
    Liquidity Ratio
    1. Current ratio
    2. Quick ratio

    RATIO ANALYSIS
    Profitability ratio
    1. Gross profit ratio
    2. Operating pofit
    3. Net profit ratio
    4. Return on investment/ return on capital
    employed
    5. Return on equity

    RATIO ANALYSIS
    Solvency ratio
    1. Proprietory ratio
    2. Debt equity ratio
    3. Interest coverage ratio
    . Leverage ratio

    RATIO ANALYSIS
    Efficiency ratio
    Inventory turn over ratio
    1. Asset turn over ratio
    2. Debtors turnover ratio
    3. Returns on net worth
    4. Net working capital turn over ratio

    RATIO ANALYSIS
    Ratio relevant to equity shareholders
    1. Earning per share
    2. Price earning ratio
    3. Dividend payout ratio
    4. Dividend yield
    5. Capital gearing ratio
    6. Book value per share
    7. Preference dividend per share
    8. Equity dividend coverage ratio
    9. Dividend cover ratio

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