Page 5: Evaluate the company using the performance ratios you discussed in class. You may need to look at several years or quarters of financial data. Compare your company to the industry/segment and competition.
As defined by RMA's Credit and Lending Dictionary, ratios are a:
"mathematical relationship between two or more things, used as indication of a company's financial strength relative to other companies of comparable size or in same industry" (pg. 1702 of the 2014/2015 Annual Statement Studies)
Find the Key Ratios
Compare your company to the industry as well as it's competitors using the resources on this page within this guide:
Journal, magazine, and newspaper articles are a great source of information on industries. They are current and contain news on specific companies as well as industries as a whole. Included on this page are a list of recommended databases you can use to find these types of articles. Use the following page within this guide to find these articles: