FINC 225 Unit 5 Submission Question

FINC225 Unit 5 Submission Question

When you are performing a financial analysis on your own company, or dealing with another company, many situations need to be evaluated. You would need financial data, and the cash flow statements, debt to ration, profitability ratios, etc to evaluate performance. The type of ration analysis I would perform, would be debt ratios, market-based rations, liquidity rations, efficiency ratios and a financial statement analysis. If the inventory of the company is high, it could be that they have too much inventory not selling quick enough, or possibly the products are not in the correct market to sell. Going over the current assets vs liabilities will be a necessary key factor in determining the companies working capital. To determine the leadership’s performance in the company, would reflect what the different rations come out to, the debts, the liabilities, etc. A successful company would be very low debt ratio, quick flow of inventory, and a high profitability rate.