How to read Balance sheet
This query is : Resolved
rajesh kumar
(Querist)
08 July 2010
How to interpret the Balance Sheet figures of a Company from the point of view of:
1. to Invest in the shares of the company
2. to understand the financial status of the Company
1. to Invest in the shares of the company
2. to understand the financial status of the Company
08 July 2010
to invest in the shares of the company see its P/E ratio which is available on the face of the financial statements.the lower the p/e ratio it is worthwhile.to understand the financial status go through its EPS .,networth, capital gearing, debt-equity ratio and dscr.this will in short give u a glimpse of the company.
rajesh kumar
(Querist)
12 July 2010
Thank you. How can we use the cash flow of the company for the same purpose.
12 July 2010
cash flow statement is the reality.it provides a window to peek into the real stand of the company. we can study the actual cash receipts ,annual cash commitments ,working capital cycle.of the company from cash flow statement.
rajesh kumar
(Querist)
15 July 2010
Thank you
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