Market To Book Ratio

One of the essential ratio to investors and analysts is the market to book ratio.

This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet.

The formula is = market price per share/book value per share.

The purpose of this ratio [...]

Ratio Analysis Of A Company

The following are the articles written in relation to Ratio Analysis of a Company:

 Assessing the Liquidity Of A Company

Assessing the Profitability Of A Company

 Assessing The Activity Of Assets Utilised

 Assessing The Leverage Or Gearing Of A Company

 Assessing The Market Value Of A Company

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Common Size Financial Statements As An Analytical Tool.

Using common size methodology to analyze the financial statements like the Income Statement and Balance Sheet are extremely useful as it removes bias particularly when the companies are of differing sizes. Common financial statements enable us to do easy analysis between companies or between time periods of a company.

It allows us [...]

Principal Tools Of Analysis Of Financial Statements

This article deals with the following principal tools that we can used to analyze the financial statement: 

Comparative Financial Statements – Year to year changes Index Number Trend Series Specialized Analysis Common –Size Financial Statements Ratio Analysis

1. Comparative financial statements -Year to year changes 

This analysis is very commonly used [...]