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Case Study Of Smith Enterprises As A Long-Term Investment

Satisfactory Essays

Above all, I do not believe it would be wise for you, Mr. Masterson, to invest in Smith Enterprises as a long-term investment. Through conducting a thorough financial analysis such as the vertical analysis, horizontal analysis, and ratio analysis, I believe you would be better off investing in another company. While Smith Enterprises shares some values when reviewing their financial statements, I am afraid it is certain circumstances, such as a decrease in net income of $12,000 that leads me to believe that the company has a bit of work to do to turn this around. Along with the decrease net income it is also important to review the finer details such as the ratio analysis. When looking specifically at Smith Enterprises profitability in which

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