Financial Report Assignment
February 19th, 2020
Greetings all
I’m developing a financial report regarding a specific company. The following part is something I wrote which my instructor said it is totally wrong with no further explanation. Please can anyone help me know did I do something wrong here when it comes to my interpretation.
- MARKET-TO-BOOK RATIO VS YEAR
The market to book in 2015 was 1.02 (approximately 1) which means the company is almost accurately valued. However, in 2016, the value decreased to 0.88 which indicated that the company’s price is overvalued. The ratio increased again until it reached 1.16 in 2018. This ratio doesn’t include the intangible assets which can tremendously affect the valuation of the company.
Year | 2015 | 2016 | 2017 | 2018 |
Market to Book Ratio | 1.02 | 0.88 | 1.07 | 1.16 |
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