Trend analysis for Emera

Financial Statements & Ratio Comparative Analysis
• To evaluate how the selected company is performing over time, more than one year's financial ratios are
required.
• Trend analysis provides signals as to whether the company's financial health is likely to improve or
deteriorate.
• Trend analysis provides signals as to whether the company's financial health is likely to improve or
deteriorate. Each student will perform the trend analysis based upon the following financial ratios:
• Leverage Ratios: to measure the extent to which the company's assets are financed with debt;
• Liquidity Ratios: to measure the company's ability to pay its bills;
• Profitability Ratios: to measure the company's ability to generate earnings;
• Efficiency Ratios (aka: Activity Ratios): to measure the company's ability to utilize its assets;
• Market Value Ratios (aka: or Market Strength Ratios): to measure the market perception about the company's
future prospects; and
• Working Capital Related Ratios
important notice:Be mindful that not all financial ratios are relevant to all industries and so please investigate
which ones are pertinent to the one that your group is focusing on.