While taking investment decision, what information should I consider from the financial statement of a company?

While taking investment decision, what information should I consider from the financial statement of a company?

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Antora! Every item in the financial statement is important for taking investment decision because ignorance of a small item the financial statement may be risky for your business investment Decision. You should study the current ratio. You should also study to know the power its assets by calculating its roi. Roi means return on investment. We also check its debt equity ratio . If debt % is more than its equity share capital. Then it will not good for you because if co. has not resources, its life close soon. At that time your money may be zero. So study whole financial statement is must.

Vinod Kumar

Educator

Prof. Vinod Kumar is an Indian Educator, Motivational Speaker, Naturopathic Practitioner and Entrepreneur . He is the founder of Svtuition... read more »

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