Return on equity, Financial Management

Assignment Help:

Your quantitative analysis will describe the financial strength of you company using the metrics we discussed in class. You may use other measures at your discretion, but the following are required to be addressed in your presentation and the accompanying literature and must not only be quantified but described.

  • Liquidity- use whichever ratio you think is best
  • Return on equity
  • Return on assets
  • Dividend payout ratio (if it pays a dividend, is it sustainable based on net income?)
  • Price/earnings ratio (especially compared to industry peers)
  • Stock price performance

Trends

Does your company exhibit any trends over the past 3-5 years? Has the profit margin steadily grown to show greater levels of management efficiency? Has your P/E ratio dropped, signifying a potentially optimum time to invest in your company? Have your debt levels and interest rate expense been reduced? If so, why is that a good sign to potential investors?

Industry Comparisons

Does your company compare favorably or unfavorably with industry peers? Is your P/E ratio higher or lower than your peers, and what does that mean to investors? If your P/E is higher, does the growth potential of your company warrant the higher stock price? If your P/E is lower, does management have a plan to re-charge growth going forward or will your stock linger at a lower value?


Related Discussions:- Return on equity

Concepts of cost of capital, Concepts of Cost of Capital 1. Explicit ...

Concepts of Cost of Capital 1. Explicit Cost And Implicit Cost The explicit cost of any source of finance may be described as the discount rate that equates the current v

Stabilization policies in the aa-dd model, Stabilization Policies in the AA...

Stabilization Policies in the AA-DD Model. Suppose the economy of Zion has reached the long run equilibrium (i.e. full employment). Now assume that a best-seller, written by Ne

Differences in working capital for different industries, Differences in wor...

Differences in working capital for different industries   Manufacturing Retail Service Inventories H

Statement used in working capital requirement, • Debtors :- Working Capi...

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

Determine firm sales revenue, a) Gross profit shows the difference between ...

a) Gross profit shows the difference between a firm's sales revenues and its direct cost of sales (COGS). Net profit, however, is calculated after deducting overheads (expenses) fr

Explain hard capital rationing and soft capital rationing, Explain Hard cap...

Explain Hard capital rationing and Soft capital rationing The NPV decision rule to admit all projects with a positive net present value requires the existence of a perfect cap

Special bond structures, Special bond structures are the municipal se...

Special bond structures are the municipal securities bearing special security structures. They are of two types - insured bonds and pre-refunded bonds.

Cost of capital, the nu-nu brothers inc. (NNBI) has the following capital s...

the nu-nu brothers inc. (NNBI) has the following capital structure,

Explain arr and payback, ARR AND PAYBACK (a) Accounting rate of retur...

ARR AND PAYBACK (a) Accounting rate of return (ARR) is a computation of the return on an investment where the annual profit prior to interest and tax is expressed as a percen

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd