New to understanding quarterly result announcements?
Here's a thread of 7 key metrics to watch and 5 things to keep in mind while analysing company results:
#business
Here's a thread of 7 key metrics to watch and 5 things to keep in mind while analysing company results:
#business
1) Revenue
Revenue is the amount of money a company earns in a given period.
Is the revenue trending upwards or downwards?
Are there any seasonal patterns to the revenue?
#ADANIENT
Revenue is the amount of money a company earns in a given period.
Is the revenue trending upwards or downwards?
Are there any seasonal patterns to the revenue?
#ADANIENT
2) Gross Profit
Gross profit is the revenue minus the cost of goods sold.
Is gross profit increasing or decreasing?
Is the increase or decrease in line with revenue trends?
#BREAKOUTSTOCKS
Gross profit is the revenue minus the cost of goods sold.
Is gross profit increasing or decreasing?
Is the increase or decrease in line with revenue trends?
#BREAKOUTSTOCKS
3) Operating Profit
Operating profit is the gross profit minus operating expenses.
How efficient is the company at managing costs?
Is operating profit increasing or decreasing?
#REFUND
Operating profit is the gross profit minus operating expenses.
How efficient is the company at managing costs?
Is operating profit increasing or decreasing?
#REFUND
5) Earnings Per Share (EPS)
EPS is the amount of profit the company earns per share of stock.
Is EPS increasing or decreasing?
What is the EPS trend over a longer period of time?
#AdaniGroup #stockmarketnews
EPS is the amount of profit the company earns per share of stock.
Is EPS increasing or decreasing?
What is the EPS trend over a longer period of time?
#AdaniGroup #stockmarketnews
6) Debt-to-Equity Ratio
The debt-to-equity ratio measures a company's debt relative to its equity.
Is the company using too much debt to finance operations?
Is the company's debt level increasing or decreasing?
#MarketUpdate
The debt-to-equity ratio measures a company's debt relative to its equity.
Is the company using too much debt to finance operations?
Is the company's debt level increasing or decreasing?
#MarketUpdate
7) Cash Flow
Cash flow measures the amount of cash a company is generating or using.
Is the company generating positive cash flow?
Is the cash flow from operating activities sufficient to cover capital expenditures and debt payments?
Cash flow measures the amount of cash a company is generating or using.
Is the company generating positive cash flow?
Is the cash flow from operating activities sufficient to cover capital expenditures and debt payments?
5 things to keep in mind while analysing company results:
1. Look for patterns over time, not just one quarter.
2. Compare the results to the company's past performance and its competitors.
3. Take into account the industry and macroeconomic conditions
1. Look for patterns over time, not just one quarter.
2. Compare the results to the company's past performance and its competitors.
3. Take into account the industry and macroeconomic conditions
4. Look beyond the numbers at the company's strategy, management team, and competitive advantage.
5. Keep an eye out for red flags, such as unusual accounting practices.
#StockToWatch
5. Keep an eye out for red flags, such as unusual accounting practices.
#StockToWatch
Remember, quarterly reports are just a snapshot in time.
Use them as part of a larger evaluation of a company's performance.
➡️ Pick great stocks using ticker.finology.in
Use them as part of a larger evaluation of a company's performance.
➡️ Pick great stocks using ticker.finology.in
جاري تحميل الاقتراحات...