Some of these companies are listed on the SME Stock Exchange, but there are many who are also listed on major stock exchanges and may be a future gensole. It is not easy to identify them; But it’s not even difficult, if you know what to do.
When you see any company, specify what is more important. Is it a net profit? Or is it a cash flow?
While the street always prefers net profits, the company declares, the real thing to study is a cash flow statement. It is here that the truth lies.
A look at the cash flow statement of the gansol clearly underscry this point. While the company was claiming to take a profit, its cash flow statement told a different story.
So, how to find clearly identifiable red flag and gapping holes? It can be seen by two things and related to the third. First, study the balance sheet and profit-and-guarantee account. And then relate it to a cash flow statement.
Are you interested in finding if you have a gensol in your portfolio? Balance sheet, profit and loss statement and cash flow statement: We will help you by showing how to read and relate to the three most important things.
Please join ET, value and evaluation masterclass.
Click here
Here we will focus on the simplest yet very effective ways to obey and find out what balance sheets.
One thing to remember: Whenever money is made from a company, there will be a few stakeholders in the system who knows what is happening. Do you believe that the high gift in the finance department of Jensol did not know that it should not be used for money for the purposes? But they remained quiet, maybe to save their job. As an investor you should know how to protect your money.
It will take a long time for some to spend on topics like investment. But remember: Where there is a market, those who spend their time investing their money are likely to succeed.
To spend your weekend to learn the art of reading cashflow statement
Click here
(Now you can subscribe to our Etmarkets WhatsApp channel)
