Question
do you agree? what is your opinion? 1. Which ratios have you heard of before this course? I have heard about activity ratio which shows
do you agree? what is your opinion?
1. Which ratios have you heard of before this course?
I have heard about activity ratio which shows the companys efficiency in operations. 2. Which ratios are more important to you as you start to invest now or in the near future?
Dividend Payout Ratio is the ratio between dividend and net income which is important to me as I would like to start to invest in the future. I like dividend investment as it is a cash flow generating investment and taking advantage of compounded reinvestment is something that I see as long term growth for my nest egg. 3. Did this chapter change your thinking at all on how to evaluate a firms performance?
Yes. It did, significantly. As I fell like now I can use real analysis and know how to apply formulas to find out on real company performance rather than before based my investment ideas on news and quarterly earnings reports. 4. How would you rate the financial health of corporate America currently? Why?
I would say financial health of corporate America is healthy at this moment because it seems like there is a bullish atmosphere among investors. Low interest rates kept by Federal Reserve (FED) that helps to get low interest capital, required to grow and expand. I am not sure about near future as seem like some companies are being overvalued base on my opinion an overall healthy atmosphere in stock market. I also have short term concern about how constantly increasing expectation from shareholders on generating earnings will impact a company culture and if or when will they decide to start cutting corners as like in recent months investigations showed in Boeing BA two air plane crashes related to Maneuvering Characteristics Augmentation System(MCAS).
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