IB interview question/accounting
Hi, how should this question be answered?
"What are the first things you look at when you take a company's financial statements in your hands?"
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this is a very broad question, but if I wast asked this question in an interview I would ask them a follow up question as to what kind if company I am looking at. But on a basic level I would start by looking at the net income, EPS figures them move on to balance sheet. There I would look at the capital structure (D/E ratio), how well the company is doing in fulfilling their current liabilities and interest payments. Last I would move on to the CFS and check out the capex figures, operating cash flow figures, and where the financing is coming from.
This question is really broad so I dont think this is a matter of right and wrong but more of a question as to see how you think.
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