Importance of Analyzing Finances of a Company Before Investing

[nomad]

If you want to buy stocks from a certain company, you first need to analyze financial health. You should avoid checking the market performance of the stocks, instead check the finances of the company. When you are able to analyze the key factors related to the financial health of a company before investing in its stock, you can easily conclude whether you will actually profit or not.

 

[Stardom22]

You are absolutely very right on that my friend.
It's quite a good Idea to examine the performance of the company especially in the profit making sector before investing in them for that matter

 

[riberet19]

This is so true, the debt and liquidity that a company has on its balance sheet is very important to know the current financial health of a company and it is the first thing that any investor should find out about, the problem is that with some small emerging companies this Information is sometimes very hard to find.

 

[Bisolami]

If you want to buy stocks from a certain company, you first need to analyze financial health. You should avoid checking the market performance of the stocks, instead check the finances of the company. When you are able to analyze the key factors related to the financial health of a company before investing in its stock, you can easily conclude whether you will actually profit or not.

I think it is also important to make research to know if they were in debt before or not. You know that the loan company or bank that they took the loan from may shut down the company so we gotta be careful

 

[Golden9]

I have never understood how people analyse stocks. Do companies release their financial records for that, and how does one know that the information you have is truly indicative of what's going on?

 

[Bisolami]

I have never understood how people analyse stocks. Do companies release their financial records for that, and how does one know that the information you have is truly indicative of what's going on?

I think they analyze it by the wave of the market. They will read the chart and know how the demand and supply is moving before they can now predict on anything.

 

[Springtime]

I completely agree. It is essential to check the financial situation of the company before buying its stocks. Here, all listed companies are required to file audited profit and loss statement with the Companies Registry. Other than that, check updated financial news reported by financial magazines.

 

[eldavis]

There are so many people that have lost huge sum of money due to the fact that they know little to notting about the company they are investing in, in terms of their finance.