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...
Is the company’s business model understandable?In simple terms how does the company makes money? Unless you understand what generates cash for the company, you cannot think of...
What is the history of the company and management?Before starting the analysis, you have to look at the company’s background and management. You need to know what is the business of the...