business purchase

This query is : Resolved

CA Sanat Pyne (Querist)
Follow

09 December 2008 IF I WANT TO BUY A COMPANY HOW SHOULD I JUDGE WHEATHER THE COMPANY IS GOOD OR BAD ?
WHICH RATIOS SHOULD I CHECK TO MEASURE THE COMPANIES PERFORMANCE?

CA Akshat

CA Akshat (Expert)
Follow

10 December 2008 the ratios given below u can judge about the comapany
1 gp ratio
2 NP ratio
3 CApital gearing ratio
4 Working capital ratio(current assets/current liability)
5 analysis of financial statement i.e. p/l, balance sheet, cash flow etc
6 auditor's reports, comments and qualification
7 Informal news
8 Management informations
9 Prjoct report
Lots of others points can b covered here...