Important Numbers to Review before Investing in Stock

As you invest in stocks, you naturally do a little research on the companies you’re thinking of investing in. The following list explains the key components to pay attention to 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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Source:http://www.dummies.com/how-to/content/important-numbers-to-review-before-investing-in-st.html

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