The Fed has certainly grabbed most of the headlines recently with interest rates cut to almost zero percent. Amazingly however this did not remain the top headline during a week when the US government decided to dabble in car manufacturing and the price of crude oil tumbled below 40 bucks.
In all of this chaos it is difficult for an investor to make sense of what is going on: it may be time for investors to get back to basics. In other words hard nosed boring financial analysis using such ratios like the Acid Test Ratio as an indication of liquidity or the Debt to Equity to assess an organization.
It is accepted that it may be difficult to get much reasonable forward looking data, but financial ratio analysis is only ever an indicator. The Acid Test Ratio, Debt to Equity Ratio and other financial ratios may however give the investor the back to basics approach needed to form the foundation of a complex investment decision.
Related posts:
Just wanted to say you have a great site and thanks for posting!