How to calculate the return of a company?There are many ways to assess the return profile of a company starting from readily available data to a more complex calculation. Return...
What are the company’s cost and margin structure?The investor must understand the past cost and margin structure and changes in the same. The purpose is to look at the long-term trends...
Are the company’s terms of trade favourable? Is Cash flow healthyThe investor must assess whether the company has reasonable bargaining power with its customers and suppliers. Additionally, ensure that...
Is the company profitable? If not, is it expected to emerge?You allocate capital to make a return on it. This is applicable to any business irrespective of size. Let’s say someone selling food on a...