List of Things to look at while doing Company Analysis

After doing economic and industry analysis one shifts his or her attention to the company in which he or she wants to invest. Below are some of the factors which one can look at while undertaking company analysis –

1. Position of the firm in the industry in which it operates, whether it’s a leader of the industry and also the market share of the firm as compared to other companies in the industry.

2. Top management of the firm and goodwill of the firm.

3. Various ratios like liquidity ratio, profitability and leverage ratios to judge the financial condition of the firm.

4. One should also look closely at the dividend payout by the company for last few years, book value of the assets of the company and also the price to earnings ratio of the firm with respect to overall price to earnings ratio of the whole market.

Apart from above one should also look at other factors which may be unique to a firm due to the industry in which company operates but are significant and which can affect the decision of the person doing company analysis.

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