Understanding & using financial ratios to evaluate corporate performance : examination of relevant data of eleven listed companies in Singapore over ten years

Abstract

This project is aimed at developing a framework of using financial ratio analysis to gauge the performance of a firm and using the information hence derived for appropriate investment decisions, especially with respect to listed shares. In this connection any correlation between market prices and fundamentals of the firm will be examined. It is with this hypothesis in mind that we proceeded to study the literature background belonging to the nature of this subject. Apart from these theoretical findings which led to a framework, numerical analysis has also been performed to substantiate our conclusions. Charts were also generated to further illustrate them. We hope that our project and the findings will be of use to market participants when they wish to make medium to long-term investments in shares listed in Singapore