Widget Spotlight #12: Company Ratio Analysis

Posted: Aug. 14, 2017, 4:49 a.m. by ernesto

Widget Spotlight #12: Company Ratio Analysis

The Financial Ratios analysis is the next step in understanding the company's historic performance and assess if the company fits your fundamental financial benchmarks.

With FinanceBoards, you can configure your researching and investing dashboard(s) with any of our 500+ financial data or information widgets. In our Widget Spotlight Series, we pick one or a group of these widgets, and explain how it works and go over why you should consider adding them to your Financeboard dashboard(s).

The three Company Ratio Analysis Widgets that are in the Spotlight today are the Liquidity Ratios, the Valuation Ratios and the Profitability Ratios Widget.

Once you have access to the company’s annual financials and have placed them on one of your FinanceBoards Research Dashboard(s), (see spotlight #11), the next step in making a decision based on them is doing a ratio analysis using each of the three key financial statements; (Balance Sheet, Income Statement and Cash Flow Statement). These three Company Widgets combined have a wealth of information that you can compare to your investment benchmarks prior to making an investment decision.

The Liquidity Ratios' Widget lists all the ratios that can be used when working with the Balance Sheet inclusive of the Altman Z score which measures a publically traded company’s likelihood of going bankrupt. This Widget gives a Value for the Company’s specific ratio and then also shows the Industry’s value and the Sector Value, for a side by side comparison.

The Valuation Ratios' Widget lists ratios where the values that are created have been taken from the Company’s Income Statement and Cash Flow Statement and include the company’s share price and dividend pay-outs. It then compares those Values to Industry, Sector and the S&P 500., also in a side by side comparison.

The Profitability Ratios' Widget takes information from Companies Balance Sheet, Income Statement and Cash Flow Statement and focuses on metrics which highlight different aspects of Profitability in terms of margins and returns inclusive of the company’s effective tax rate. It then compares those values to the Industry, Sector and the S&P500.

Placing these three Company Ratio Analysis Widgets on one of your FinanceBoards Research and Investment Dashboards gives you the immediate ability to see all of your financial Statement investment benchmarks on one screen prior to making any Investment Decision. It also can serve as a means of keeping up on the health of the company financials of one’s investments compared to their Industry, Sector and the S&P Values.

Instantaneous Comparisons can also be made by entering the Ticker symbol for the Company Comparison to be made and then seeing all the Ratio’s for that company appear on these widgets on the same dashboard.

The breadth of FinanceBoards’ research data and information widgets can be much greater than just the company’s Ratio Analysis Widgets though. You can also create any Widget yourself from any API and add them to your dashboards, either our premade ones or ones you’ve created. Signing up for a free account below is a great way to explore all the widgets FinanceBoards offers.

 

Click here for a seven minute overview of FinanceBoards that includes the steps on how to add widgets such as these to your dashboard.

Thanks for reading, and stay tuned for our next Widget Spotlight.