Chapter 14: Company Analysis

In this section

• 14.1 Performing Company Analysis
  • 14.1.1 Overview of Company Analysis
    A comprehensive guide to evaluating a company’s performance through strengths, weaknesses, opportunities, and threats analysis.
  • 14.1.2 Financial Health Assessment
    An in-depth exploration of assessing a company's financial health through liquidity, solvency, and profitability metrics.
• 14.2 Interpreting Financial Statements
  • 14.2.1 Income Statement Analysis
    Delve into the intricacies of analyzing income statements to assess a company's financial performance by evaluating revenue, expense patterns, and earnings analysis.
  • 14.2.2 Balance Sheet Analysis
    An in-depth guide to analyzing a balance sheet, focusing on asset composition and liabilities & equity structure.
  • 14.2.3 Cash Flow Statement Analysis
    An in-depth exploration of cash flow statement analysis, focusing on operating cash flows, investing, and financing activities.
• 14.3 Analyzing Financial Ratios
  • 14.3.1 Liquidity Ratios
    Application of liquidity ratios to assess a company's ability to cover its short-term obligations.
  • 14.3.2 Profitability Ratios
    Profitability ratios including Gross Margin and Operating Margin to assess earnings efficiency and operational success.
  • 14.3.3 Solvency Ratios
    A detailed examination of solvency ratios, focusing on the debt to equity and interest coverage ratios, critical for assessing a company's financial health and its ability to meet long-term obligations.
  • 14.3.4 Efficiency Ratios
    Exploring how efficiency ratios, such as Asset Turnover and Inventory Turnover, are crucial for evaluating a company’s ability to manage its assets effectively to generate sales.
• 14.4 Assessing Preferred Share Investment Quality
  • 14.4.1 Creditor Preference
    Understanding the priority and role of preferred shares within capital structure and liquidation processes.
  • 14.4.2 Dividend Policies
    Comprehensive examination of dividend policies focusing on dividend stability and coverage as crucial aspects of preferred share investment quality.
  • 14.4.3 Market and Credit Risks
    The intricate factors influencing preferred share investment, focusing on their sensitivity to market conditions and the creditworthiness of the issuer.