Investment Psychology: Identifying Financial Capability of Three Diversified Companies

Running head: INVESTMENT PSYCHOLOGY
Investment Psychology
Name of the Student:
Name of the University:
Authors Note:

INVESTMENT PSYCHOLOGY
1
Table of Contents
Introduction:...............................................................................................................................2
Identifying the industry:.............................................................................................................2
Conducting research on financial History:.................................................................................2
Depicting how it fairs against the competition:.........................................................................4
Stating the reason behind buying the shares:.............................................................................5
Predicting future performance of the company by evaluating past peaks and troughs:.............6
Conclusion:................................................................................................................................6
Reference and Bibliography:......................................................................................................8

INVESTMENT PSYCHOLOGY
2
Introduction:
The overall aim of the assessment is to identify financial capability of three
diversified companies, which could increase return from investment for investors.
Furthermore, the assessment also focuses on detecting the performance of all the 3 selected
companies are relatively compared to its competitors by identifying different ratios and
current situation of the organization. The evaluation of past performance is relatively helpful
in depicting the future performance of the selected companies.
Identifying the industry:
Amazon.com Inc. is listed in consumer service industry, where it has become the
leader of the industry by capturing market share all over the world. Coca Cola Bottling Co.
Consolidation is under the beverage industry, where the organisation provides soft drinks to
its customers. Domino’s Pizza Inc mainly falls in food delivery industry, where the overall
income of the company has grown adequately over the period. The identified industry mainly
helps in understanding the competitions of the company, which could help in detecting their
performance.
Conducting research on financial History:
Amazon.com Inc 2015 2016 2017
Operating Margin 2.090% 3.080% 2.310%
Gross Margin 20.510% 22.140
%
22.870%
Quick Ratio 0.770 0.780 0.760
Debt/Equity 1.060 0.790 1.370