RECOMMENDATION ON THE WHETHER

FIRM
IS WORTH INVESTING IN OR NOT

I have already accounted for devoted to investment in a firm ,company or any

financial institution . On the basis of which a investor can decide whether he
invest or not . Here investor also try to know whether that firm is worth investing
or not . An investor would know how much profit comes on his or her investment
. As a advisor I had explained an ample of fundamental of analysis that’s why a
investor can have decision about her investment . In previous question has shown
several kinds of fundamental analysis also known as ratios . Depending
fundamental analysis an investor can determine is he or she invest or not . That
firm is appropriate or not also ability to earn more profit and their competitor
position in the market all this could know by these fundamental analysis . To
know how much have return an investor can earn . An investor also can know
how much ability to make money that firm . An investor would invest in a
company based on companies share prices. Which an essential item for an
investor and a company. Share price is to change any time due to a companies
production or consuming . every single day the a particular companies share
prices ups and downs . A successful trader always keeps an eye an another firm to
compare profit ,risk and also sustain in market . When a particular firm dosen’t
move keeping peace with everyone in business area ,then other competitor have
merits of opportunities . All competitors keep in touch each other share prices
rated. When a company because of causes does share prices low. Then another
company instantly sell that share in high rated. An investor also is to know as
regards of corporate governance in a firm . It’s a criteria of rules ,practice and
process of a firm . Corporate governance essentially involves balancing the
interests of a companies stakeholder. Stakeholders keeps an important rules in a
firm . Stakeholders is a member groups without whose support of the
organisation would cease to exist . A stakeholder can be an individual ,group or
organisation who is impacted by the outcome of a project . There also has to
written a lot elements as regards financial analysis . Profitability ,efficiency ,debt
,liquidity ,cost ,asset including these a company also a investor build a high
profitability and low risk industry or firm . Surely an investor would try to invest
more returnable company than profit . If a company Holder, Shareholder ,CEO,
Stakeholder all kinds of company owner can’t use properly those analysis in
finance ,they would not alleviate their risk and debt position. Through this
fundamental analysis a investor know a companies condition to earn money,Also
a company and an investor can concept companies position in the market . In
profitability ratio consist of two items which are sales on investment another is
sales o return . sales on investment includes four metrics which are gross profit
margin ,operating profit margin , pretax margin ,net profit margin . These items
are comes out by a companies income statement . There companies gross profit
is to divide by sales revenue . Then operating profit margin comes by operating
profit divided net sales .Net profit sales is to calculate by net profit divided net
sales. Now what kind of concept can have through this metrics an investor as a
recommendation. Well ,when a company want to compare with another company
,company owner wants to know companies gross profit position . All companies
intend to get high gross profit margin . How a company can have high gross profit
margin ,when a companies product is high pricing then company would try to
demand premium. Besides a companies product cost would be lowed. When a
company included with a superior product ,branding ,exclusive technology
.Brought about a firm can sell their product high prices. On the contrary, lower
costs can be happened economics of scale, standard perform of operational
efficiency . For this a firm can earn best profit margin also can compare than other
firms to sustain in the market . If that firm is full with this action then an investor
can invest this firm. In operating profit margin a firm can understand ,when a
firms operating margin profit is increasing other side gross profit are same that
means a companies can control operating cost very well.If it does inverse then a
company could not control operating cost. In net profit margin all sorts of
expenses are deduct . Each firm compare with net profit margin with other firm
that doesn’t expose whole story . A company has to calculate all kinds of margin
to choose and also compare your company from another . To be noticed ,when a
company compare than other company ,they has to compare same sector . If your
company is a paints company you have compare that categorize of business. A
company has liquidity term ,which means how much company has short term
debt also comfortable to pay those debt . That’s why a company doesn’t be
bankrupted .sometimes it has noticed that company could not check forcely their
liquidity term . lack of forcely checking a company could not gain their aim . All
things has to be noticed before investing in a company . Then a company has to
analysis activity ratio which manages working capital and long term assets .
Working capital is current assets and liabilities of a company . By this working
capital long term assets a company increasing production . these ratio also known
as efficiency ratio ,turnover ratio . When a ratio company complete operational
activities efficiency then it would be efficiency ratio. Off and on it also be asset
utilization ratios ,brought about when a company uses efficiency long ,short term
assets to produce more and more . When a company can produce a plenty of
products then profit would be increasing day by day . For investing a company or
firm wants to know companies debt position . that’s why a company has not be
bankrupted . There are some ratio has by could know about their debt position
.Liquidity ratio and solvency ratio also known as debt ratio Under this company
can endure short term long term debt . Separately a company can know how
much percentage debt in companies assets ,liabilities .A companies debt position
is low then company is better to invest . Valuation ratios and analysis helps to a
investor to know a companies valuation means is that companies good or bad to
invest . By earning per share a company