Category Archive for: Financial Statement Analysis

MEASURES OF LIQUIDITY AND CREDIT RISK

Quality of Assets and the Relative Amount of Debt Although a satisfactory level of earnings may be a good indication of the company’s long-run ability to pay its debts and dividends, we must also look at the composition of assets, their condition -and liquidity, the timing of repayment of liabilities, and the total amount of…

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Evaluating Percentage Changes

 In Salll and Earnings Computing the percentage changes in sales, gross profit, and net income from one year to the hext gives insight into a company’s rate of growth. If a company is experiencing growth in its economic activities, sales and earnings should increase at more than the rate of inflation. Assume, for example, that…

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BUSINESS WEEK’S PERfORMANCE RANKING

OF THE  500 What makes a top corporate performer? To determine how the companies in the S&P 500 index stack up. against one another, Business Week ranked all 500 using eight key criteria of financial success, We looked at growth in sales, profits, and return to shareholders. To reward’ consis,teney, we measured performance over both one…

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