according to us the principal areas of judgement to be considered while investing in any company are...

According to us the principal areas of judgement to be considered while investing in any company are as follows: y Balance sheet of the company: Whenever an investment has to be made in a company, the first and foremost area to go through is the balance-sheet of the company. The balance-sheet of the company gives the details about its assets and liabilities. The higher the asset side of the company as compared to the liability side, the stronger is the balance-sheet. The investors prefer a company that has a strong balance-sheet. y Goodwill of the company: y Financial statements: y Risk Reward Ratio For stock investors, the balance sheet is an important consideration for investing in a company's stock because it is a reflection of what the company owns and owes. The strength of a company's balance sheet can be evaluated by three broad categories of investment-quality measurements: working capital adequacy, asset performance and capitalization structure. H ow to Evaluate Company For any company, the ability to meet its short-term and long-term financial goals is an essential factor in maintaining its operations and ensuring future growth. A company evaluation at regular time intervals helps to check its financial health, its capital structure and its potential to attract investors. How to Evaluate Company : You can also evaluate company by assessing its capital structure and its potential to attract stock investors. A strong balance sheet i s one of t he most important things that stock inve stors consider before investing in the company¶s stock. A balance sheet¶s strength can be measured in three categories: y Working capital adequacy y Capital structure y Asset performance

according to us the principal areas of judgement to be considered while investing in any company are...

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