Transaction Comps Modeling Wall Street Prep Exam –Q&A
1. Liquidity Ratios: measures of a firm's short-term ability to meet its current obligations 2. Profitability Ratios: measures of a firm's profitability relative to its assets (oper- ating efficiency) and to its revenue (operating profitability) 3. Activity Ratios: Measure of efficiency of a firm's assets 4. Solvency Ratios: Measure of a firm's ability to pay its obligations 5. Inventory Turnover: COGS / avg inventory 6. Receivables Turnover: revenue / average accounts receivable
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transaction comps modeling wall street