You need to analyze a firm's performance in relation to its peers. You can do this either by comparing the firms' balance sheets and income statements, or by comparing the firms' ratios. If you only had time to use one means of comparison which method would you use and why?

Describe and justify why you would use the following ratios as an analyst to evaluate the performance of a company. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios

Should we use (1) total sales, (2) EBITDA, (3) EBIT, or (4) net income to evaluate firm performances? Please explain. In what cases that one is better than other indicators?

What is the basic purpose for examining trends in a company’s financial ratios and other data? What other kinds of comparisons might an analyst make?

Please see below. Be sure to include an explanation as well. If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well?  What would you look for in a company that you were considering investing in?

What are some important ratios to analyze in financial statements? Which measures are important and Why? And once i do calculate the numbers how can i interpret the results and make a good management decision?

How would you use financial statement analysis?         Is there one ratio that you feel is more valuable than another?

Ratio analysis involves calculations that use the data from the financial statements to evaluate the performance of companies in different key areas. How would this information be used by a credit analyst as compared to someone is going to make an investment decision?

Please include relevant parts and be thorough with explanation.  If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well?  What would you look for in a company that you were considering investing in?

Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic Value Added (EVA). Discuss and explain both. Which is a better representative of the firm’s performance, and why?