How do you study a company before investing?

Before investing, an investor needs to study the following 3 things of a company:

• Analysing a company’s balance sheet & income statement is the core part of studying a company. Calculate EPS, PE Ratio, ROE, ROA, Debt Ratio, Debt to Equity Ratio, Net profit margin are some important ratio that you need to calculate.

                                           How do you study a company before investing?

• It is important to figure out whether the product of a company has demand in the market or whether the demand for the product will remain in future.
• Analysing the management of a company is a highly required task. Because whatever the demand is if the management of a company fails to operate the business smoothly due to lack of expertise, all the investors will be the sufferer.

To learn more watch the video: