Thread by @LakewaterPMS

Before #investing, one should always dig deep into the fundamentals of your #investment.
Below are a few quick indicators which can give you an insight on whether a company's financial statements are misrepresented or accounts are being window dressed.

#financialliteracy

1) Percentage of miscellaneous expenses as a proportion to total revenue

2) Change in Reserves unexplained by Profit/Loss for the year and Dividends

3) Provision for Doubtful Debt as a proportion of Debtors outstanding for over 6 months

#fundamentalanalysis
#financialanalysis

4) Growth in Auditors’ Remuneration vis-a-vis growth in revenues

5) Change in method of calculating depreciation

6) Trend in Ratio of Capital Work in Progress to Gross Block

7) Contingent Liabilities as a Percentage of Total Net Worth

#equity #investorawareness

8) Volatility in non-operating incomes such as Yield earned on Cash & Cash Equivalents

Hope it helps you make correct #Investment decisions.

#investoreducation #stocks #consulting #stockmarket #finance #FinancialFreedom #balancesheet