| Revenue |
$X |
Revenue should be increasing year over year, indicating growth in the company's business. If revenue is decreasing, analysts may want to investigate the reasons behind the decline. |
| Net income |
$Y |
Net income should ideally be increasing year over year, indicating that the company is profitable. If net income is negative, or if it is decreasing over time, this may be a cause for concern. |
| Earnings per share |
$Z |
A high earnings per share (EPS) indicates that the company is generating profits that are being distributed among its shareholders. Analysts will want to compare the company's EPS to that of its competitors to determine if the company is performing well in the industry. |
| Return on equity |
X% |
A high return on equity (ROE) indicates that the company is generating a high level of profit relative to the amount of shareholder equity invested in the company. However, a high ROE may also indicate that the company is taking on too much debt. Analysts will want to compare the company's ROE to that of its competitors to determine if the company is performing well in the industry. |
| Debt-to-equity ratio |
X |
A high debt-to-equity ratio indicates that the company is relying heavily on debt financing. While some level of debt is normal for most companies, a high debt-to-equity ratio may make the company vulnerable to economic downturns or other financial pressures. Analysts will want to compare the company's debt-to-equity ratio to that of its competitors to determine if the company is taking on too much debt. |
| Gross margin |
X% |
A high gross margin indicates that the company is able to sell its products or services at a significant markup over the cost of production. This can be an indication that the company has a competitive advantage in its industry. However, a high gross margin may also indicate that the company's prices are too high, which could lead to lower sales. |
| Operating margin |
X% |
A high operating margin indicates that the company is able to generate a high level of profit relative to its operating costs. This can be an indication that the company is running its business efficiently. However, a high operating margin may also indicate that the company is cutting corners or neglecting investments that are necessary for long-term growth. |
| Inventory turnover |
X times |
A high inventory turnover ratio indicates that the company is selling its inventory quickly, which can be an indication that demand for its products is high. However, a very high inventory turnover ratio may indicate that the company is not keeping enough inventory on hand to meet demand, which could lead to lost sales. |
| Accounts receivable turnover |
X times |
A high accounts receivable turnover ratio indicates that the company is able to collect payments from its customers quickly. This can be an indication that the company has good customer relationships or efficient payment processes. However, a very high accounts receivable turnover ratio may indicate that the company is overly aggressive in collecting payments, which could lead to strained customer relationships. |
| Current ratio |
X |
A |
