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Showing posts from November 29, 2017

Company analysis for investment decision

What is company analysis? Company analysis is a part of the fundamental analysis of the stocks. Under company analysis, an investor collects and evaluates the company’s financials, its track record, products, goals, missions, profitability, growth, etc. It helps investors while making the decisions for stock investment. Company analysis requires the careful examination of the company’s quantitative and qualitative fundamentals. Company analysis Qualitative and quantitative fundamentals Sources and uses of funds : Sources and uses of funds in an organization can be traced with the help of fund flow analysis. One of the major uses of the fund flow analysis is to find out whether the entity has used a short-term source of funds to finance long-term investments. Such methods of financing increasing the risk of a liquidity crunch as the long-term investment may not generate enough surplus in time to meet the short-term liabilities. Growth record : The growth in...