{"appState":{"pageLoadApiCallsStatus":true},"articleState":{"article":{"headers":{"creationTime":"2016-03-26T15:49:51+00:00","modifiedTime":"2017-04-11T22:36:06+00:00","timestamp":"2022-09-14T18:18:08+00:00"},"data":{"breadcrumbs":[{"name":"Business, Careers, & Money","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34224"},"slug":"business-careers-money","categoryId":34224},{"name":"Personal Finance","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34273"},"slug":"personal-finance","categoryId":34273},{"name":"Investing","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34288"},"slug":"investing","categoryId":34288},{"name":"Investment Vehicles","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34290"},"slug":"investment-vehicles","categoryId":34290},{"name":"Stocks","_links":{"self":"https://dummies-api.dummies.com/v2/categories/34298"},"slug":"stocks","categoryId":34298}],"title":"Checking Important Company Fundamentals before Investing in a Stock","strippedTitle":"checking important company fundamentals before investing in a stock","slug":"checking-important-company-fundamentals-before-investing-in-a-stock","canonicalUrl":"","seo":{"metaDescription":"Before you buy stocks, you have to do a little research on the companies you're thinking of investing in. 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Pay attention to the following key components when you look at a company's main financial statements (the<a href=\"https://www.dummies.com/personal-finance/investing/stocks-trading/introduction-to-income-statements-for-stock-investors/\" target=\"_blank\"> income statement</a> and the <a href=\"https://www.dummies.com/personal-finance/investing/stocks-trading/introduction-to-balance-sheets-for-stock-investors/\" target=\"_blank\">balance sheet</a>):\r\n<ul class=\"level-one\">\r\n\t<li>\r\n<p class=\"first-para\"><b>Earnings:</b> This number should be at least 10 percent higher than the year before.</p>\r\n</li>\r\n\t<li>\r\n<p class=\"first-para\"><b>Sales:</b> This number should be higher than the year before.</p>\r\n</li>\r\n\t<li>\r\n<p class=\"first-para\"><b>Debt: </b>This number should be lower than or about the same as the year before. It should also be lower than the company's assets.</p>\r\n</li>\r\n\t<li>\r\n<p class=\"first-para\"><b>Equity:</b> This number should be higher than the year before.</p>\r\n</li>\r\n</ul>","description":"Before you buy stocks, you have to do a little research on the companies you're thinking of investing in. 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It should also be lower than the company's assets.</p>\r\n</li>\r\n\t<li>\r\n<p class=\"first-para\"><b>Equity:</b> This number should be higher than the year before.</p>\r\n</li>\r\n</ul>","blurb":"","authors":[{"authorId":9001,"name":"Paul Mladjenovic","slug":"paul-mladjenovic","description":" <p><b>Paul Mladjenovic</b> is a renowned certified financial planner and investing consultant. He has authored six editions of the bestselling <i>Stock Investing For Dummies</i> and is frequently interviewed by media outlets including MarketWatch, Kitco, OANN, and more. 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Checking Important Company Fundamentals before Investing in a Stock

By: Paul Mladjenovic and

Updated: 04-11-2017

Investing in Stocks For Dummies

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Before you buy stocks, you have to do a little research on the companies you're thinking of investing in. Pay attention to the following key components when you look at a company's main financial statements (the income statement and the balance sheet):

Earnings: This number should be at least 10 percent higher than the year before.
Sales: This number should be higher than the year before.
Debt: This number should be lower than or about the same as the year before. It should also be lower than the company's assets.
Equity: This number should be higher than the year before.

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Checking Important Company Fundamentals before Investing in a Stock

Investing in Stocks For Dummies

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