Tuesday, November 18, 2008

Fundamental Analysis - Ratios Formula

This is a collection of commonly used financial ratios to assess the health of a company, as part of fundamental analysis. They include financial ratios from categories such as: Management Ratios, Profitability, Liquidity, Working Capital, Debt Structure, Debt Protection.

The definition are taken from a financial course in Valuation which I took a few years ago. The definitions may be more Australian focussed but it should be mostly applicable to international companies too.

Please feel free to comment.....

Note that these formula will be used in later articles when I start analysing blue-chips. For technical traders and Gann followers, notice that as of today, the ASX has plunged for the third time, meaning either this is the bottom or there is one more to go. Hence my move to analysing blue-chips since this is the period to buy. I would leave biotechs for a while at least until it is quite certain we have hit the bottom of this cycle.

1 comment:

Zahid Khan said...
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