What should i include in a presenation to perform a financial analysis on three companies?

Question

I have this years financial statement for the three companies. I have the industry standards. I am wondering what i would include in a presentation about what percentage of money an inheritor should invest into each of the three companies.

financial ratios? which ones are most important? how to analyze them?
qualitative analysis? what to look for?
how to compare to industry standards?
What more do i need?

Answer 1

Plz include the following:

Financial ratios:

Return on Net Worth (RONW), Return on equity (ROE), Operating Profit Margin (OPM), Price/Earnings/ProfitGrowth (PEG), Sales growth, Cash Earnings per share, Dividend Yield, Compounded Annual Growth Rate(CAGR) of profits, Debt/equity,

Qualitative analysis:

Strong brand, New products in pipeline, R&D expenses to Profit ratio, Management track record, Future prospects, Strong Moat or entry barrier to competition, Multiple products and markets.

Please read Wikipedia on all the topics mentioned above. You may also read a book called "How to think like Benjamin Graham and invest like Warren Buffet."

Answer 2

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