BU127 Lecture Notes - Lecture 24: Current Liability, Efficient-Market Hypothesis, Financial Statement Analysis
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BU127 Full Course Notes
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Understanding the business investing decisions depend on : industry factors, individual company factors, economy-wide factors return on an equity security investment dividends or increase in share price. *don"t need to know but interesting to know. Roe = net profit margin x asset turnover x financial leverage. Understanding a company"s strategy business strategy operating decisions transactions financial statements. Ratio and percentages analyses ratio analysis (or percentage analysis) is used to express the proportionate relationship between two different amounts. Component percentages express each item on a particular statement as a percentage of a single base amount. Test of profitability return on equity profitability is a primary measure of the overall success of a company this ratio measure indicates how much income was earned for every dollar invested by the owner. Many analysts consider this ratio as the best overall measure of a company"s profitability this ratio tells us how efficient management is at using its assets to generate earnings.
