?????? ?????????????? - ?????????????????? ?????????????? ????????????????

If you are on the verge of investing, enquiring, or JV a company, you need to read this next post describing how we analyze the target company's financial health based on its periodic financial reports.

We Begin by reviewing the company's background and its industry. Try to gain an understanding of the company's mission, vision, and strategy.

The Financial statements are the primary source of information for analyzing a company's financial performance. The three primary financial statements are the balance sheet, income statement, and cash flow statement. We review each statement to understand the company's financial position, profitability, and cash flow.

We extract financial ratios which are important tools to assess a company's financial performance. They can be categorized into four main groups: liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios.

• Liquidity ratios?- These ratios measure a company's ability to meet its short-term obligations. Key ratios include the current ratio, quick ratio, and cash ratio.
• Profitability ratios?- These ratios measure a company's ability to generate profits from its operations. Key ratios include gross profit margin, operating profit margin, and net profit margin.
• Solvency ratios?- These ratios measure a company's ability to meet its long-term obligations. Key ratios include debt-to-equity ratio, interest coverage ratio, and debt-to-assets ratio.
• Efficiency ratios?- These ratios measure a company's ability to utilize its assets efficiently to generate revenues. Key ratios include inventory turnover ratio, accounts receivable turnover ratio, and fixed asset turnover ratio.

One of the relevant analysis sources is the management discussion and analysis (MD&A), which is a section in a company's periodic financial reports that provides insights into the management's view of the company's financial performance. We review the MD&A to understand the management's perspective on the company's financial results and future prospects.

A crucial source hides in the footnotes and disclosures, which are additional information provided by a company in its financial reports. These disclosures can provide important insights into a company's financial position and future prospects. We review the footnotes and disclosures to gain a deeper understanding of the company's financial position and prospects.

We pay efforts to compare the company's performance with its prime competitors (if this information is accessible) and/or with its industry.

By following these steps and analyzing a company's financial statements, ratios, management discussion, and analysis, footnotes, and disclosures, and comparing its financial performance with its competitors, we can gain a comprehensive understanding of a company's financial performance and future prospects.

Specific ratios and measures

The first step in analyzing a company's financial reports is to obtain the reports themselves, and once the reports are obtained, there are several key measures and ratios that can be used to analyze the financial health of the company. These include:

• Liquidity Ratios - measure the company's ability to meet its short-term obligations. The most commonly used liquidity ratios include the current ratio, quick ratio, and cash ratio.
• Profitability Ratios - measure the company's ability to generate profits. The most commonly used profitability ratios include the gross profit margin, operating profit margin, and net profit margin.
• Debt Ratios - measure the amount of debt that the company has relative to its assets or equity. The most commonly used debt ratios include the debt-to-equity ratio, debt-to-assets ratio, and interest coverage ratio.
• Efficiency Ratios - measure the company's ability to use its assets to generate revenue. The most commonly used efficiency ratios include the asset turnover ratio and the inventory turnover ratio.

Webintelligency is a Market Research and Competitive Analysis services provider. We have expertise in online research and analyzing various data to form the most coherent Market Review reports, as well as consulting companies in their next investment, partnering, or JV decisions by analyzing the target companies' periodic financial reports.

Our combo service of research and analysis is the key to making educated and data-based business decisions.

Contact us now for more information, and samples, and learn about our reasonable fees.