Michael "Shoe" Xu

How to evaluate the quality of a company? Is a company good or bad? We cover how to calculate the return on invested capital in this one. Read on.

A strategy is the action of giving up one goal in order to pursue another goal by a business. This post helps you understand two strategies: cost leadership strategy and differentiation strategy.

In the previous episode, we examined the time series analysis of the

Industry is dynamic. How do industry changes affect individual company's financial statements? Read on.

How do companies in different industries differ? By using common size analysis, we can clearly see how a paper manufacturer and a TV manufacturer differ in areas such as gross profit, etc.

Companies' financial performances are impacted by the industries they are in. We will set the tones for analyses of the paper manufacturing industry and the household appliance industry.

We will cover Michael Porter Five Forces for Industry Profitability Analysis. Read on.

What's the likelihood that a company can pay back its principal and interest for its long term liabilities? Read on.

Liquidity is the other side of the business. What ratios should businesses focus on if they want to repay short-term debt? Read on.

Not only can we calculate turnover ratio for total assets, but we also can do the same for other asset items such as AR, inventory, etc.

Profitability is the name of the game. It is why entrepreneurs start companies. Here let's dive deep into concepts such as net profit ratio, total asset turnover, and return on asset, all part of profitability analysis.

Common size analysis is using the percentage of each item to understand the cost/expense structure, capital sources, and asset allocations, etc. Aka structure analysis.