Financial Analysis Techniques for Assessing Company Performance and Profitability

As a finance analyst, I utilize a variety of financial analysis techniques to assess a company's performance and profitability. Some of the key techniques I typically use include:

• Ratio Analysis: By analyzing financial ratios such as profitability ratios, liquidity ratios, and leverage ratios, I can gain insights into a company's financial health and performance.
• Financial Modelling: Building financial models helps me forecast future performance, conduct scenario analysis, and make informed decisions based on different financial scenarios.
• DCF Valuation: Discounted Cash Flow (DCF) analysis enables me to determine the intrinsic value of a company by estimating its future cash flows and discounting them to present value.
• Comparable Company Analysis: By comparing a company's financial metrics with those of its peers, I can benchmark its performance and identify areas of strengths and weaknesses.

These techniques, among others, allow me to conduct a comprehensive analysis of a company's financial performance and profitability, assisting in making sound investment and strategic decisions.