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You are a senior financial analyst for Capital Financial, a fictitious investment firm based in Dallas, TX. Capital Financial would like to allocate at least
You are a senior financial analyst for Capital Financial, a fictitious investment firm based in Dallas, TX. Capital Financial would like to allocate at least $500,000 of their capital to purchase shares in a firm in the software section within the technology sector. As the analyst, you must make an informed recommendation to the senior leadership team in a report that addresses the following:
- Identify three similarly sized firms (small to mid-cap) in the software section of the technology sector.
- For each of the three firms, calculate three ratios from each of the four performance categories (12 ratios for each company) and incorporate them into the body of your report.
- Select the ratio from each performance category that you feel is essential to use when comparing the firms. Use the ratio selected from each category to create bar chart that illustrates the firms' performance relative to one another.
- Explain why the ratios you selected are the best for determining the strength of the three firms.
- Use your ratio computations to describe each firm's level of strength in each performance category.
- Provide a final recommendation indicating which of the three firms Capital Financial should purchase shares in.
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