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What components would you use to convince an investor about your company's financial health? |
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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. Related Article: Investment Banking Interview QUESTIONS |
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