Question

Is it possible for two separate financial analysts to provide two different viewpoints on a company (i.e. positive and negative) and each be able to make their case by selectively using different financial ratios?

Answer 1

Yes, it is highly likely that two different financial analysts provide contrasting views on companies' financial statements because of their approach of analysis and it is not a standardized process. Moreover, analysis depends upon the requirements of analysts. Some want to focus more on one thing and some want to focus more on another thing. It is their own perspective.

Furthermore, there are numerous ratios and therefore, analysts handpick them on the basis of their needs. Hence, this proves why analysts can have different points of view.

Hi mate,

I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.

In case of doubt, please comment. I will consider myself fortunate if I can help you.

All the best for your bright future.

Be safe from the corona. Wear a mask before going out and wash hands frequently especially before touching the face