To what extent do you think that complementing the quantitative analysis of financial ratios with qualitative analysis would make the interpretation more worthwhile? If you agree, what are the qualitative measures that can be used ?
It is very important to complement the quantitative analysis of financial ratios with qualitative analysis, it makes the interpretation more worthwhile. Quantitative analysis involves looking at the hard numbers: anything from comp sheets (comparable companies) and financial ratio analysis to complex discounted cash flow models and more. You’re looking at profits, margins, sales trends, present and future values and such to gain insight into the meat and potatoes of the company’s business operations.
Qualitative analysis, on the other hand, requires digging beneath the hard numbers to discover the qualities of the business because those qualities are ultimately what produce the quantitative results.
Qualitative analysis involves asking yourself questions like “Do I understand the business and its competitive environment?” "Are the employees happy working here?" "Is the businees harming it's surroundings?" “Does management have a lot of integrity and talent?” “Are management’s interests aligned with my own?” “Am I under the influence of any psychological biases?” “Why are these numbers the way they are?” “What is the company’s competitive advantage and how durable is it?”
The qualitative measures which can be used are understanding the competitive environment, internal environment, management interests, social works of the business, welfare of employees and the society etc.
To what extent do you think that complementing the quantitative analysis of financial ratios with...
Ch 04, blueprint probs, analysis of financial statements. 4: Analysis of Financial Statements: Debt Management Ratios Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to (1)(creditors, analysts, shareholders)They include the: (1) Debt-to-capital ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's (2)(cashflow statement, income statement, balance sheet), while the last two ratios analyze debt by looking...
What kinds of topics do you think are best suited for qualitative or quantitative approaches to research?
To what extent do you think that predictive analytics and big data are the future of strategic analysis? Justify your answer.
1. How do you think financial ratios differ across different industries? Compare two industries of your choice and select a few ratios and explain whether you think the ratios would be higher or lower for each of those industries and explain why. 2. What are some uses and limitations of financial ratios?
What do the liquidity ratios tell you in the financial analysis? 1. The capital structure of a company 2. The profitability of the company 3. The efficiency of inventory 4. The company’s ability to pay off debt obligations 5. Ratios analysis
do you think a quantitative and qualitative study could be conducted at the same time? Why or why not.
7. Personal financial ratios Ratios are calculations that help you understand and interpret financial data. Ratio analysis is a tool that can help you measure your financial health. Indicate whether each of the following statements about ratio analysis is true or false. True False Personal financial ratios can be used to show how your income, savings, and debt are related 0 0 Financial ratios should only be used for a business's financial statements, not individual financial statements Personal financial ratios...
What are the arguments against lying, cheating, breaking promises, and stealing, and to what extent do you agree or disagree with them? Be specific. Present any other arguments you can think of and justify them as fully as you can.
In this chapter, the term public health was defined. To what extent do you think that the government, at any level, has the right to legislate good health? Do you think a government body has the responsibility or right to require all motorcycle drivers to wear helmets because statistics show that wearing helmets can save lives?
As a healthcare manager, reflect on how you think financial statement analysis and operating indicator analysis would be useful. What do you think are some of the problems or challenges inherent in financial statement analysis?