Applying Fundamental Analysis to Equity Research: What are you hoping for? We are now going to come up with a way to do a "limited resource" equity study. As individual investors, you and
Study of The Financial Ratios: The Operating Ratios The Operating Ratio, which is also known as the "Activity Ratio," shows how well a company can turn its present and long-term assets into cash flow
Study of The Financial Ratios: The Valuation Ratios The Valuation ratios compare the stock price of a company to either its overall worth or its ability to make money. This lets you know how che
Study of The Financial Ratios: The Leverage Ratios The leverage ratios, which are also called liquidity ratios or gearing ratios, show how well a company can run its day-to-day business over the long
Study of The Financial Ratios: The Profitability Ratios The profitability ratios help the analyst figure out how profitable the business is. When it comes to making money, the numbers show how well
Study of The Financial Ratios: Some Common Financial Ratios Liquidity Ratios: These ratios show how well a company can meet its short-term commitments.Current Ratio: Current Assets / Current Liab
Study of The Financial Ratios: what is the Financial Ratios You can use financial ratios to see how well a company is doing financially. So we can see how much a company is making, how well it's usin
The Cash Flow Statement: Introduction of The Cash Flow Statement Another important financial statement is the Cash Flow Statement, which is also called the Statement of Cash Flows. It shows how chang
Getting to Know the Balance Sheet Statement: The math behind the balance sheet The balance sheet tells us about the company's assets, debts, and owners' equity. As you know, the P&L statement tal
Getting to Know the Balance Sheet Statement: Introduction of the Balance Sheet Statement A Balance Sheet is one of the most important financial documents because it shows how much money a company has
Getting to Know the P&L Statement: Net Profit after tax The Net Profit After Tax (NPAT) is an important financial measure that shows how profitable a business is after all taxes are taken out of
Getting to Know the P&L Statement: The Profit before tax It's the amount of money left over after running costs are subtracted from operating income, but before taxes and interest are subtracted.
Getting to Know the P&L Statement: The Expense details A common way to group expenses is by what they're used for, which is also known as the "cost of sales method" or "nature of the expense". T
Getting to Know the P&L Statement: Business's top line (revenue) You may have heard business experts talk about a company's "top line". They are talking about the income part of the P&L sheet
Getting to Know the P&L Statement : The Profit and Loss statement People sometimes call the Profit and Loss statement the P&L statement, the Income Statement, the Statement of Operations, or
Getting to Know the P&L Statement: Introduction of the financial statements The income statement, which is another name for the profit and loss (P&L) statement, is a financial document that l
Annual reports of companies : The Financial Statements of the Company One of the most important parts of an annual report might be the financial records. The company is going to show the following th
Annual reports of companies : What is an Annual Report? Investors in the stock market can learn a lot from a company's annual report because it gives them specific information about the company's fin
How an investor thinks : Characteristics of Investible grade There are a few things that make a company investible grade stand out. There are two main groups that these traits can be put into: the "q
How an investor thinks : How does invest work? Think about a plant. Would it not grow if you gave it the right amount of water, fertilizer, and care? Yes, it will. In the same way, think of a good bu
How an investor thinks : Compounding has an effect People who trade in the stock market need to understand the compounding effect in order to make money over time. To begin, you invest a certain amo
How an investor thinks : The way speculators, traders, and investors think You can speculate, trade, or invest in the market, depending on how you want to play. There are three different kinds of inv
Foundation of Fundamental Analysis: Tools Required for Fundamental Analysis Most of the tools you need for basic analysis are simple and can be found for free. To be exact, you would need these thing
Foundation of Fundamental Analysis: Fundamental vs. Technical Analysis Fundamental analysis is the process of figuring out what a security is really worth by looking at its economic, financial, and
Foundation of Fundamental Analysis: Overview Fundamental Analysis (FA) looks at a business from every angle. When someone wants to put money into a business for a long time (say, 2 to 5 years),
