samedi 21 février 2015

Specific Balance Sheet parameters used for fundamental analysis

There are hundreds of financial ratio and balance sheet parameters available from a company's annual report. Surely some are more important than others. Try finding them and searching through many threads I mainly noticed broad statements with some exceptions. From another thread:




Quote:




Originally Posted by McLovin View Post

For the business: Good balance sheet (ratio analysis), good margins, low revenue concentration, high return on equity, low CAPEX, strong free cash flow. Ideally I also like companies that have a high % of recurring revenue. And most importantly, a business I can understand.



For the share: Margin of safety.




a. Which ones do you prefer to use and are most important to you?

b. How many parameters do you use at ones?

c. What do you use as a benchmark to determine if the parameter is good or bad

d. Have you developed a grading system that incorporates them together as your 'first-cut' list




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