Which are the strategic critical success factors of the company? Which are the main weaknesses of the actual strategic decisions (draw a SWOT analysis for this purpose).
Evaluation of the firm profitability according to the industry characteristics: explainment what ratios are more suitable for a company in this industry. Consider how to measure overall profitability, return on sales, and return on assets. What trends do you notice in profitability components for the firm over time (last two years)?
Is the firm efficient in its use of assets? Consider efficiency in terms of total asset turnover. How could you better investigate the total asset turnover? Which operational measures would you select?
Is the company likely to meet their debts as they come due? Consider ratios such as the current ratio, the quick ratio, and the debt-equity ratio. Also consider interest costs and the times interest earned ratio.
Consider the future prospects of the company and evaluate the risks they face. Does the company demonstrate a potential to increase its return on equity through operations? Why?
Are there any unusual or non-recurring items that need to be considered in your analysis? That is, are the earnings of high quality? Are the earnings persistent?
As a potential investor, is the company worth seeking further information about? What sort of information would you want? How do you evaluate the information available on the corporate website?