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Calculate Company Performance

Is there a way to show that one of my companies is doing better than all the rest?

I have to perform a little research. I have the turnover, cash flow and profit figures (but no investment figures unfortunately) for 16 companies for the past 5 financial years. Is there a way to show that one particular company is doing better than all the rest? Is there some sort of 'index' that I might calculate for each one of them?

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Bill's Answer
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Generally, for publicly traded companies it is easy to compare stock prices, which should reflect the future value, or earning potential, or a company.

If they are privately held, or you have limited information, you can always look at a business on 3 main factors:

1. Margins (how profitable are they)

2. Growth (how fast have sales been growing and what are the prospects)

3. Return on Equity (is the business capital intensive or not, and what kind of return is earned on each new dollar invested in the company)

Of course, this is a limited set of analysis, and any company should be looked at intensively before making an investment.

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