The IPO financial analysis provides a summary of the financial performance of a company to know the factual information about its financial metrics such as its revenue from operations, profitability growth, cash flow performance, and others. This financial information is analysed to understand the strengths and challenges of a company. Ratio analysis of financial statements highlights the operating margins, net margins, Return on net worth (RoNW) and leverage (debt to equity) of the company which aids the decision making(whether to subscribe for the IPO) of the prospective investors.
To arrive at the overall recommendation on the IPO credit, other significant factors like the business model of the company, management experience & stability, near term -future prospects and growth of the company are also considered.
Last updated on 10-Sep-21
