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Looking at Four Important Parts of a Company’s Fundamentals

Part of Investing in Shares For Dummies Cheat Sheet

Knowing what aspects of a company to look at is crucial before you invest in shares. Cut through the jargon – this is what you should have in mind when inspecting a company’s performance.

  • Earnings: This number should be at least 10 per cent 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.