To crack Financial Analyst Interview, do watch this video too. i.) Financial Analyst (11 Conceptual Interview Questions) : ruclips.net/video/-LwbQbWEj50/видео.htmlsi=E-ulxz_PuCUgTD0h
Ans 1. The difference between quick ratio and current ratio suggests that high value inventory or high level of inventory has been stuck in the company as current assets which is reflected as high current ratio and low quick ratio. It could be due to high levels of raw material inventory maintained by the company due to market conditions or high value finished goods inventory whose delivery is expected in near time is being accounted. It can be seen as positive or negative depending on the company's situation.
Ans 2. We need to analyse the factors behind the high PE of Company B. Factors can be - The company has a competitive edge over its peers. - The company has shown a remarkable growth in historical periods which marks an optimistic view for the investors. - The company has got some breakthrough in its operations like any patent or new technology which will further improve its future prospects. There can be other factors as well like any big investor enters the company which for a short time improves the market perception, or any fund raising or corporate action in the company.
Ans for 2. In general less PE Ratio is considered as good because from investors point of view , the earning is far better compared to price of share. I would suggest to invest in Company 1 asumming other things remaining the same.
great info and I agree with the following comments. Based on what I have learned from you Q#1 the company has assets; however, the company's assets are tied up in inventory. This does not necessarily mean a bad things just that in order to meet short-term financial obligations the company would have to possibly sell inventory. Q#2 We would have to take a look at the sector's benchmark; however based on these two companies, the outlook for investors is more positive for Company #2 than Company #1, because Company #2 has higher earning and investors are willing to pay a higher premium for that. Based on this information personally, I would invest in Company #2, but again I would have to see what the sector benchmark is, because if the sector benchmark is closer to 10 then I am going to Company #1.
PLEASE DO MAKE ME CORRECT IF MY UNDERSTANDING OF THE CONCEPT ITSELF IS WRONG. OPEN FOR SUGGESTIONS AND CORRECTIONS WHICH WILL HELP ME TO GET THE CONCEPT RIGHT TO AVIOD FUTURE ANALYSIS . THANK YOU .
To crack Financial Analyst Interview, do watch this video too.
i.) Financial Analyst (11 Conceptual Interview Questions) : ruclips.net/video/-LwbQbWEj50/видео.htmlsi=E-ulxz_PuCUgTD0h
Ans 1. The difference between quick ratio and current ratio suggests that high value inventory or high level of inventory has been stuck in the company as current assets which is reflected as high current ratio and low quick ratio.
It could be due to high levels of raw material inventory maintained by the company due to market conditions or high value finished goods inventory whose delivery is expected in near time is being accounted.
It can be seen as positive or negative depending on the company's situation.
Ans 2. We need to analyse the factors behind the high PE of Company B.
Factors can be
- The company has a competitive edge over its peers.
- The company has shown a remarkable growth in historical periods which marks an optimistic view for the investors.
- The company has got some breakthrough in its operations like any patent or new technology which will further improve its future prospects.
There can be other factors as well like any big investor enters the company which for a short time improves the market perception, or any fund raising or corporate action in the company.
Very appreciation for these nice videos...
Pls keep explaining in simplicity
Ans for 2. In general less PE Ratio is considered as good because from investors point of view , the earning is far better compared to price of share. I would suggest to invest in Company 1 asumming other things remaining the same.
great info and I agree with the following comments. Based on what I have learned from you Q#1 the company has assets; however, the company's assets are tied up in inventory. This does not necessarily mean a bad things just that in order to meet short-term financial obligations the company would have to possibly sell inventory. Q#2 We would have to take a look at the sector's benchmark; however based on these two companies, the outlook for investors is more positive for Company #2 than Company #1, because Company #2 has higher earning and investors are willing to pay a higher premium for that. Based on this information personally, I would invest in Company #2, but again I would have to see what the sector benchmark is, because if the sector benchmark is closer to 10 then I am going to Company #1.
Swot analysis along with demographic preferences, sentiment analysis and choices adds in decision making
Breakeven is required to analyze
PLEASE DO MAKE ME CORRECT IF MY UNDERSTANDING OF THE CONCEPT ITSELF IS WRONG. OPEN FOR SUGGESTIONS AND CORRECTIONS WHICH WILL HELP ME TO GET THE CONCEPT RIGHT TO AVIOD FUTURE ANALYSIS . THANK YOU .