Braithewaite & Co. Company Financial Analysis

Financial analysis involves evaluating the financial health of a company by examining its financial statements, including the income statement, balance sheet, and cash flow statement. The purpose of financial analysis is to assess a company's profitability, liquidity, solvency, and overall financial performance.

Common financial ratios used in financial analysis include:

Liquidity ratios - these ratios measure a company's ability to meet its short-term obligations, such as its ability to pay off its current liabilities. Examples of liquidity ratios include the current ratio and the quick ratio.

Solvency ratios - these ratios measure a company's ability to meet its long-term obligations, such as its ability to pay off its debt. Examples of solvency ratios include the debt-to-equity ratio and the interest coverage ratio.

Profitability ratios - these ratios measure a company's ability to generate profits from its operations. Examples of profitability ratios include the gross profit margin, net profit margin,