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is there any kind of a tool that would allow us to compare companies and their...

is there any kind of a tool that would allow us to compare companies and their relative credit strenth ?
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Answer #1

There Is no particular measure to analyse company strength. But there are some of the important ratios that can be helps the company credit strength those are:

1) Liquidity ratio: This is an important tool that can be helps to measure the company liquid position th right its financial health.

Liquidity ratio = current assets - investments/ current liabilities.

2) Price earnings ratio(PEG) : It is an important measure that can be helps to measure the company earnings and the company growth .

PEG = price/earnings per share(eps)/Eps growth.

3) operating efficiency : The company has to maintain its operations within theme company and it's all related expenses to maximise the profit in the company.

4) Solvency :  The company has sound good to maintain good financial health to maintain good financial strength to maintain the company credit risk.

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