Private vs Public Company Ratio Analysis
ONE PRIVATE COMPANY Vs. ONE PUBLIC COMPANY - Online since 1996 for student, investor and professional research.
One Private Company vs. One Public Company - Click here for Sample Report
Your report is generated while you are on-line:
|Sustainable Growth Rate prediction|
|Altman Z Score potential for bankruptcy prediction|
|Financial Ratio Analysis - 28 of the most useful financial ratios|
|5 years of ratio analysis results, including latest filed quarter, taken directly from the Securities and Exchange Commission (SEC) database|
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Your MBA financial analysis tool assists you in looking deep within the quarterly and annual financial statements (in any monetary currency) to determine how well or poorly the privately held company has performed on a comparative basis to a publicly held company over the time periods in question.
The financial information you submit to your MBA is analyzed on a real-time basis and compared to the public company you selected.
Your financial analysis report is broken down into the various ratio categories:
- Predictor Ratios indicate the potential for growth or failure.
- Profitability Ratios which use margin analysis and show the return on sales and capital employed.
- Asset Management Ratios which use turnover measures to show how efficient a company is in its operations and use of assets.
- Liquidity Ratios which give a picture of a company's short term financial situation or solvency.
- Debt Management Ratios which show the extent that debt is used in a company's capital structure.
In assessing the significance of various financial data, experts engage in financial ratios analysis, the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company's activities, such as the ratio between the company's current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company's financial statements that contain figures on assets, liabilities, profits, and losses. Ratios are only meaningful when compared with other information. Since they are most often compared with industry data, ratios help an individual understand a company's performance relative to that of competitors and are often used to trace performance over time.
Ratio analysis can reveal much about a company and its operations. However, there are several points to keep in mind about ratios. First, financial ratios are "flags" indicating areas of strength or weakness. One or even several ratios might be misleading, but when combined with other knowledge of a company's management and economic circumstances, ratio analysis can tell much about a corporation. Second, there is no single correct value for a ratio. The observation that the value of a particular ratio is too high, too low, or just right depends on the perspective of the analyst and on the company's competitive strategy. Third, a financial ratio is meaningful only when it is compared with some standard, such as an industry trend, ratio trend, a ratio trend for the specific company being analyzed, or a stated management objective.
In trend analysis, ratios are compared over time, typically years. Year-to-year comparisons can highlight trends and point up the need for action. Trend analysis works best with five years of ratios.
The second type of ratio analysis (cross-sectional analysis), as in this report, compares the financial ratios of two or more companies in similar lines of business. One of the most popular forms of cross-sectional analysis compares a company's financial ratios to industry averages
A printable report is generated while you are on-line. The resulting analysis gives you an in-depth comparative view of the two companies analyzed.
Your MBA report provides you a comparative analysis, one company to another: Financial Ratios (28 of the most important ratios), Sustainable Growth Rate, and an "Altman Z Score" potential for bankruptcy analysis.