1, balance sheet:
If you invest in a company, of course, you should contact his family. How much property (assets) do you have and how much money (liabilities) do you owe? Companies with too much debt are of course relatively poor.
Specifically, it mainly depends on the asset structure and debt ratio to judge the degree of risk. For example, is it leveraged or radical? Receivables, payables, prepayments, etc. , can provide some clues.
2. Income statement
Mainly used to see profitability.
Of course, a good company must be a profitable company, a profitable company. Or the trend is to become a high-profit company. We can mainly examine the historical and present growth, growth quality and sustainability of growth. Apple, for example, has experienced rapid growth for a long time. Nokia has not grown in recent years, or is declining every year.
Main quantitative indicators:
Growth rate: revenue increased year-on-year; Net profit increased year-on-year
Quality of growth: gross profit margin; Net interest rate; And the changing direction of these two indicators.
Sustainability of growth: mainly to judge the future of the company. It involves some industry analysis. This is not easy to quantify.
3. Cash flow statement
It depends on the cash flow. Only when the cash flow has an appropriate degree can the enterprise continue to operate. This is more professional.
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The above is about financial statements, most of which can be quantified. Because reports are numbers. The financial report of an enterprise only reflects part of it, so it depends on other factors to comprehensively reflect the essence of the enterprise.
take for example
4. Governance structure.
For example, most private enterprises are more active than state-owned enterprises. Professional managers are relatively more advanced than family businesses. It is easy and risky to monopolize a kind of power; But if the equity is too scattered, it will not be as bad as the internal friction of big brother.
5. Human resources
For example, those with higher average education will be better. For example, a sales-oriented enterprise depends on the proportion of sales staff; The product type depends on technicians and R&D personnel.
6. Strategic command
Judge whether his strategy is correct or what you think is better. Or is there a possibility of obvious dislocation?
7. others. Anyway, there are many such non-quantitative standards. For example, strong leadership is not strong, management ability. Strategies of foreign competitors and domestic competitors. Upstream and downstream situation analysis and so on.