Open AccessExploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US
Author(s) -
Chikashi Tsuji
Publication year - 2014
Publication title -
case studies in business and management
Language(s) - English
Resource type - Journals
ISSN - 2333-3324
DOI - 10.5296/csbm.v1i2.6434
Subject(s) - valuation (finance) , equity (law) , financial ratio , business , valuation effects , linkage (software) , stock (firearms) , stock market , financial analysis , finance , financial system , mechanical engineering , paleontology , biochemistry , chemistry , horse , biology , political science , law , gene , engineering
The objective of this paper is to explore the linkage between corporate financial conditions and the market valuation of the famed US chemical industry firms by the case study using financial ratio and market data. More concretely, we first conduct corporate financial ratio analyses including the Du Pont system analysis as to four well-known large chemical industry firms in the US. Our analyzing period is from the fiscal year of 1979 to 2012. After the financial ratio analyses for the above period, we further examine the relations between corporate financial conditions and the market valuation of the four US firms by using their stock price data after the end of the fiscal year of 2012. As a result, the corporate financial conditions of the four firms at the end of the fiscal year of 2012 appear to be adequately reflected in the subsequent stock prices in equity markets.