1.

What components would you use to convince an investor about your company's financial health?

Answer»

1. Liquidity: the amount of cash as WELL as the cash that is easily convertible to cash assets owned by a company. Liquidity is first considered for the short-term and then for the long-term.

2. Solvency: The company can meet its obligations continuously.

3. Operating Efficiency: It is the best SOURCE of its financial success and operating margin is used to indicate the efficiency.

4. Profitability: In evaluating a company, liquidity, operating efficiency, and basic solvency can perform BETTER. Net margin is a good METRIC for the evaluation of profitability.

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