Financial Statement Analysis Blog #5 – asset base composition analysis
As an investor, we should want to see growth in the companies whose stocks we are investing in. Growth = increase in stock price = higher return for us. But how can we tell if a company’s management is pouring in profits back into the company to drive higher growth, versus spending lavishly on company perks and indulging in higher pays? An asset base analysis can help investors suss it out. Learn more about this cool technique here.
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