Fitra Prima Wulansari

Yusuf Nurhamdi

Suggestion for Case

Analysis

Case method- provides the opportunity to

move from a narrow, specialized view that
emphasizes functional techniques to a broader,
less precise analysis of the overall corporation

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Researching the Case Situation

Dont go beyond the decision date of the case in your

research unless instructed to do so
Sources of information:
Hoovers
Company annual and 10-K reports

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Researching the Case Situation

Ratio analysis- the calculation of ratios from data

on financial statements
Liquidity ratios
Profitability ratios
Activity ratios
Leverage ratios

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Analyzing Financial Statements

Review historical income statements and balance

sheets
Compare historical statements over time
Calculate changes that occur in individual
categories form year to year
Determine the change as a percentage
Adjust for inflation

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Common size statements- financial

statements in which the dollar figures have been
converted into percentages

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Altmans Z Value bankruptcy formulacalculate the likelihood of going bankrupt.

Compare historical statements over time

Index of sustainable growth- used to

determine whether a company embarking on a
growth strategy will need to take on debt to fund
the growth

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Useful Economic Measures

Constant dollars Prime interest rate Gross domestic product-

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