Theoretical Review of the Role of Financial Ratios

Nadar, Diwahar Sunder; Wadhwa, Bharti

doi:10.2139/ssrn.3472673

Cited by 2 publications

(3 citation statements)

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“…Based on last year's annual financial report [10-K], this article conducts a comprehensive performance evaluation of First Solar from three key aspects: liquidity, solvency and profitability, which will help investors understand the company's operating efficiency. , financial risk, and profit potential [7].…”

Section: Performance Evaluationmentioning

confidence: 99%

A Financial Analysis and Valuation of First Solar, Inc.

2024

AEMPS

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First Solar is an American company specializing in thin-film photovoltaic solar solutions using Cadmium Telluride (CdTe) technology. This technology offers environmental protection and sustainability advantages. The company maintains market competitiveness through continuous technological improvements, enhanced efficiency and durability, and expanded production capacity. First Solar holds significant market share in the United States and India, aided by government incentives like the U.S. Inflation Reduction Act and Indias Production-Linked Incentive Program. The company is expanding globally through acquisitions and long-term agreements, with plans to build new factories in both countries to boost production. Financially, First Solar performs well in liquidity, solvency, and profitability, ranking in the upper-middle tier among industry competitors. Its healthy short-term debt solvency is indicated by strong current and quick ratios, while its low debt ratio and high interest coverage ratio highlight robust long-term debt solvency. The companys gross and net profit margins are stable and expected to grow. First Solars earnings per share (EPS) and revenue growth rates surpass those of its peers, and its price-to-earnings (P/E) and earnings growth (PEG) ratios suggest lower relative future earnings growth, enhancing investment appeal. In summary, First Solar demonstrates strong market competitiveness and growth potential with its advanced technology, sustainable business model, and solid financial performance, positioning it as a leader in the solar energy industry.

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Section: Performance Evaluationmentioning

confidence: 99%

A Financial Analysis and Valuation of First Solar, Inc.

2024

AEMPS

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“…Ü Evaluarea analitică a riscului de manipulare a situațiilor financiare Ratele financiare s-au dovedit a fi extrem de utile în identificarea unor modificări substanțiale la nivelul po ziției financiare și al performanțelor economice, în analiza riscului de faliment sau în previzionarea performanțelor viitoare, prin utilizarea atât a indicatorilor financiari de structură, cât și a celor financiari de rentabilitate și solvabilitate (Korcan et al, 2013;Nadar & Wadhwa, 2019). Însă aceste informații trebuie transpuse într-un context de analiză mai larg, având în vedere relațiile de interdependență dintre diferitele rate financiare utilizate în evaluarea riscului de cosmetizare a situațiilor financiare.…”

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“…Totodată, așa cum remarcau și Nadar & Wadhwa (2019), ratele financiare nu asigură comparabilitate decât în cazuri ideale. Astfel, entitățile economice sunt comparabile, iar ratele financiare sunt relevante pentru o analiză tehnică financiară atâta timp cât acestea sunt similare din perspectiva proceselor interne, a politicii de finanțare, a eficienței și eficacității managementului operațional sau a politicii de remunerare a mana gementului.…”

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Detecting the Elements for Cosmeticizing the Financial Statements Using Analytical Models

Burcă

Bogdan

2021

CBR

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Throughout the last three decades, the published literature has been drawing attention towards the ongoing deterioration of the quality of the summary financial statements published by the economic entities. Nevertheless, the financial statements provide conclusive information regarding the companies' fraud potential. In this article, we aim to illustrate the utility of analytical models for fraud risk assessment by leveraging the information presented in the financial statements. These analytical procedures are even more useful in the current environment of the COVID-19 pandemic.

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Theoretical Review of the Role of Financial Ratios

Cited by 2 publications

References 57 publications

A Financial Analysis and Valuation of First Solar, Inc.

A Financial Analysis and Valuation of First Solar, Inc.

Detecting the Elements for Cosmeticizing the Financial Statements Using Analytical Models

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