What To Look Out For When Buying Stocks -

: Look for consistent or growing profit distributed per share.

A company’s core stability is revealed through its three primary financial statements: the , Balance Sheet , and Cash Flow Statement . Profitability Metrics : what to look out for when buying stocks

: The percentage of revenue that remains as profit after all expenses. A higher margin provides a buffer against rising operating costs. Liquidity and Debt : : Look for consistent or growing profit distributed

: A lower ratio suggests the company is less reliant on borrowing and less likely to struggle during economic downturns. Cash Flow Quality : what to look out for when buying stocks