Markets and their Analysis.

Markets and their analysis INDEX Topic Page # Introduction2 Literature Review3 Hypothesis5 Statistical Analysis - 6 Sample Selection and Data Description6 Empirical Results7 Analysis of Results10 Conclusion12 Appendices13 References Introduction Conventional wisdom says that net income or the cash available after interest and taxes is the most common means to determine the performance of the company. However, although it is certain that Net Income in general could be used as a measure of success, it is dependent …

…the correlation between Net Income and the independent variables. Conclusion: Using the financial tools available to us we arrived at conclude that our alternative hypothesis is accurate. After a thorough analysis of the data we found significant correlation between Net Income and the independent variables. Alternatively we conclude that ROA, ROE, Operating Income, Core Earnings, Cash Flow, and Gross Profit are the variables most likely to drive the Net Incomes of companies in the US.