Selection Criteria Checklist (Financial Perspective)
September 14th, 2009 by Marubozu
GROWTH
- Sales Revenue YOY Growth > 10%
- Net Profit Margin YOY Growth > 10%
- Cash Flow > 10%
- Operating Cash Flow is growing YOY
FINANCIAL HEALTH
- Net Profit Margin > 10%
- Low debts or Net cash
- Long Term Debt < 3 x Net Profit
- Current Ratio > 1
OPERATING EFFICIENCY
- ROA > 10%
- ROE > 15%
# YOY = Year Over Year
# Please check the link on the right under Education & Tools for financial ratio explanation & definition