HELP! Company Analyses or Financial Analyses

[adagio]

Dear Forumees!
I have an interview for an internship at an Assat Management Group. THe post concerns "assistant to Petrol Investment group manager".
Today I had preliminary so called "phone contact or interview." in a week i have 1 hour kinda exam.
1 part questions
2 part: I will be given all resluts of a company for a year( ROE, ROA...), accounting tables....
I have to quickly analyse WHAT kind of CO is it, What is his recent success, tendencies, weak points, ....

My question
What are the main point that one should pay attention?
How one should analyse a company?
Any possible clues (turkce : Puf noktalari)
and last ona is ANY prominent auhtor's book on the subject

I would appreciate very much Your ideas, any kind of points, remarks

Thank you

[silbermond]

hey i have to do the same shit but is realted with my project from subject Corporate Finance. about capital structure and dividend policy. one thing that i am writing n my project is, every company should keep the ballance between debt and equity financing. It is known that debt finacing is cheaper than equity financing however it has a risk of financial distress.

so if somebody helps to adigao, will help at the same time to me.

there so many students who study finance but when you ask question then .....:evil:

[Martingale]

Salom,

Congratulations first of all, not everyone is invited to the interview for IM;)


1. be prepared for the questions part. You should expect questions related to the industry as a whole and also about the company. So do some research on the company you are having interview with.
And also find out whther the company is value investor or growth investor? It really matters. If it's value investor, expect lots of balance sheet and valuation stuff. Growth investors are less stressfull on that, but they pay lot attention to many other aspects of the company(management etc.) You can easily find this out from the way they evaluate the companies or mutual funds. BTW, you should aslo have some idea who are the clients of this company. Bottom line, do your homework!

2. not sure about analyzing(actually not sure whther I have enough knowledge to comment on that), but you should definitely know
all these ratios: PE ratio, PEG ratio, ROA, ROE etc.
Know everything on balance sheet, income statement and statement of cash flow.
be able to interpret data
be able to work with charts
etc.
If you want to have a picture how professionals analyze a company go to Morningstar. For example, google is considered as a growth stock/company(well, that's kinda obvious:) ), but the fair value of GOOG according to Morningstar analysts is equal to 254.
If you don't have an access to Morningstar through your campus, workplace, lemme know. I can email you a sample of those analyst reports.

Good Luck!

[Prince]

Salom
Yeah , as Laziz said ,
be prepare for questions and questions related to Industry/company...
Do some research on Google about company/industry!
The rest things are about ur knowledge and ur ability to analyze the data.
Good luck
P.S I would recomend u to review ur book , ratios and everything related to analyzing data....

[Martingale]

hey i have to do the same shit but is realted with my project from subject Corporate Finance. about capital structure and dividend policy. one thing that i am writing n my project is, every company should keep the ballance between debt and equity financing. It is known that debt finacing is cheaper than equity financing however it has a risk of financial distress.

so if somebody helps to adigao, will help at the same time to me.

there so many students who study finance but when you ask question then .....:evil:

got no shit on Corporate finance, but I guess you are talking about financing mix(debt vs. equity).
You didn't ask your question in the end.

[silbermond]

got no shit on Corporate finance, but I guess you are talking about financing mix(debt vs. equity).
You didn't ask your question in the end.
just i am doin some assignment about one chinese company in which I should investigate its financial statements, dividend policy and give some investemnt startegy or advise for prospective investor. but the problem is my company really sucks with no dividend payemnts for last five years, three times change of the company name, and five yaer consecutive negative earnings. It sounds real chinese............so my question is what should my advise be in above mentioned terms or what can we say about general financial health of the company. in corporate finance i think there are two widely used books: 1. book with authors brealey and myers 2. book with authors ross and co. Personaaly i find Ross's book more easy.

[Martingale]

just i am doin some assignment about one chinese company in which I should investigate its financial statements, dividend policy and give some investemnt startegy or advise for prospective investor. but the problem is my company really sucks with no dividend payemnts for last five years, three times change of the company name, and five yaer consecutive negative earnings. It sounds real chinese............so my question is what should my advise be in above mentioned terms or what can we say about general financial health of the company. in corporate finance i think there are two widely used books: 1. book with authors brealey and myers 2. book with authors ross and co. Personaaly i find Ross's book more easy.

Well, the name speaks for itself as you said chinese:) . 5 consecutive years negaitve earnings:shock:...why don't they declare bankrupt. If earnings are negative, there should be no dividends of course.
Your advice to investors should be: stay away and never come back:lol:
Or if the company is expected to grow due to some changes in management structure and/or if it is in a growing industry, your advice would be to let a takeover by a potential company happen. (what a long way of saying sell it:lol: ) .In my humble opinion.

[adagio]

Thanks, Laziz and Prince,
as I had the interview on Friday, I had to find this info, quickly
actually, We had courses of FIn Anal. and our group, 3 people, had analyzed Burberry Group, British Airports for a semestre,
But you know, courses are different from real life, some of u surely have worked and had internships that's why I have asked.
I tried to read H. HUTIN's book, ALL about Financial Analyses, it is reaaly interesting!!!!!!
I only cud finish 200 pages out of 950p.
2 hours of interview, it was so short, really, we talked very interesting topics,
as Laziz have mentioned I had to analyse a balanshet, and Actif and passif
but, They did not say anything about themselves , which sector they work, in which sector are their clients...
so , I had to analyse just numbers,
they asked" forget ur univ courses, ratios -GIVE us critical thinking, in which sectior might this Co. be? what kind of bussiness? try to answer, give details, we don't want ur ratios bla bla?

uhhh, hope it gonna be a positive result! Wednesday, so long time!

thanks again, for ur comments

[Amiri Turkiston]

just i am doin some assignment about one chinese company in which I should investigate its financial statements, dividend policy and give some investemnt startegy or advise for prospective investor.
but the problem is my company really sucks with no dividend payemnts for last five years, three times change of the company name, and five yaer consecutive negative earnings. It sounds real chinese............so my question is what should my advise be in above mentioned terms or what can we say about general financial health of the company. in corporate finance i think there are two widely used books: 1. book with authors brealey and myers 2. book with authors ross and co. Personaaly i find Ross's book more easy.

- divident - Microsoft didn't paid even a cent as a divident...so that's why for the Chinese Co. that can't be a reason for decision making...they may invest their money on restructuring or smth like this

- three times change of the company name - wow that's totally BS......they may involved on different investigations by tax officers or court...
too doubtful

- 5 years of consecutive negative earnings - it might depend on outside events....it is not always depends on internal factors as ya know...
they might have a good sales....but anyway being inside of negative earnings
+try to analyze the factors of negative earnings


in such a way...probably IB should evealuate this Co. as cheap as possible and buy it of course in case if there is a possibility to make some restructuring work at the Co. and then re-establish the production
but don't forget to look into industry figures...what a' they are saying....is this Co. figures below than industry average...just look