Fundamentals analysis - Mar 2026

Quantitative data 
These statements shows how well is the company managed & profitability.

1)Profit & Lost statement (Income and expenses statement over a period of time, shows profitability of company)
Revenue (Top line/Sales)
Expenses 
Profits (Nett profit, bottom line requires to be positive)

2) Balance sheet (shows a recordof. company's assets, liability and equity at a specific date/time)
Assets ( Borrowings + shareholders equity/savings) 
Liabilities 
Shareholders Equity (Assets - liabilities = shareholder equity)

3) Cashflow statement (inflows and outflows over a period of time)

Cash from operations : generated from day to day business operations 

Cash from financing : paid or received cash from repaying or borrowing funds

Cash from investing : investing or sale of assets
Cashflow can be positive or negative.

5 key figures (there is no hurry... safety first) We want to keep my hard earned money safe.
1) Profit Margin = Net Profit / Revenue (compare with previous period or other competitors benchmarks)
2) Positive Cash flows from Operations (primary business income) 
3) Check Liquidity: Company ability to meet current liabilities and obligations using
Current Ratio = Current assets / Current liability >1 (From Balance sheet)
4) Leverage or gearing
Debt equity ratio = Total Liability / Shareholder equity. (from balance sheet, a higher ratio shows the company is taking more loans for the business, hence carry higher risk. Companies with no debts might be using all shareholder's equity / no growth.)
5) Valuation of company:
Price Earnings ratio  = current share price / earnings per share (higher ratio means more expensive compared to competitors)
Earnings per share = Net profits / shares outstanding (how much earnings for every stock owned)
We want stable EPS, not volatile earnings across the years
TTM = Trailing Twelve Months