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4 answers

EBIT, EBITA, EBITDA
Earnings before interest and tax; .... and amortization; ... depreciation and amortization

Per share metrics, the most common being earnings per share ("EPS")

Margin metrics, such as NI / Sales
Return metrics, such as return on invested capital ("ROIC"), return on equity ("ROE"), and return on assets ("ROA")

Growth metrics, such as EPS growth

2006-09-03 22:41:17 · answer #1 · answered by Shadow 1 · 0 0

I don't quite know what you mean by "metrics," but the start for any such comparison, I should think, would be their web pages. Then get a copy of their annual report (which I think is not difficult), and compare their financial conditions. The other thing you would need would be the product information about what they make or sell or do. This would be either on their web page or in a catalog which could be requested on their web page.

The point is to compare similar modes of communication from the two or more different companies, so that you are looking at things which they would compare themselves. This is easiest if you are comparing companies with similar goals; that is, companies that compete with one another. Compare Coke and Pepsi, not McDonald's and International Harvester. The latter could only realistically be compared in financial statements.

2006-09-04 05:41:55 · answer #2 · answered by auntb93again 7 · 0 0

It depends a lot on what area of the company you are trying to compare. Most metrics are used to compare relative valuation, profitability, growth, creditworthiness, working capital usage or investment returns

Relative Valuation:
PER (Share Price / EPS)
EV/S (Enterprise Value / Revenue)
EV/EBITDA
[EV = Market Cap + Total Debt – Cash]

Profitability:
Gross Profit Margin
EBITDA Margin
Net Income Margin

Growth:
Revenue Growth
EBITDA Growth
Net Income Growth

Creditworthiness:
Debt Coverage Ratio (Interest Expense / EBITDA)
Debt to Equity (Total Debt / Shareholders Equity)
Debt to Capital (Total Debt / Total Assets)

Working Capital Usage:
Inventory Turnover
Accounts Receivable Turnover
Accounts Payable Turnover

Investment Returns:
Return on Invested Capital
Return on Investment
Return on Assets

2006-09-04 07:01:22 · answer #3 · answered by Comerade T 2 · 0 0

This might help...

http://www.creditmanagementworld.com/analysis.html

2006-09-07 16:40:12 · answer #4 · answered by pagamenews 7 · 0 0

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