Ari, now that we have an idea of how sales flow through an income statementor or flow through a profit in law statement, how do you find out the most important metrics to focus on when you are analyzing a new business? Yes, wonderful. That was amazing. I feelt tout much more confident in the understanding the income statement. Um, so basically, i start with a ten k document. And after i read the beginning that just describes the business model, i'm going to look for a section called m d and a, which stands for management discussion and analysis. It is usually am commentary for management, describing what are the most important ins what are the drivers of the
A company's financials are more than just a set of numbers. They can tell a story that helps us understand the core of a business and where its growth opportunity lies.
John Rotonti talks with fellow Motley Fool senior analyst Auri Hughes about the financials to watch before putting your money into a publicly traded company. They discuss: - Profit drivers in a company’s balance sheet - The portions of a 10-K that investors should pay close attention to - Metric that provide insights about a company’s growth prospects
Stocks discussed: AAPL, SBUX, CPRT, CNSWF
Host: John Rotonti Guest: Auri Hughes Producer: Ricky Mulvey Engineer: Tim Sparks, Rick Engdahl
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