What To Look Out For When Buying Stocks -

A company’s core stability is revealed through its three primary financial statements: the , Balance Sheet , and Cash Flow Statement . Profitability Metrics :

: Measures how effectively a company uses shareholder capital to generate profit; a range of 10–20% is often considered healthy. what to look out for when buying stocks

: A ratio above 1.5 generally indicates the company can meet its short-term debt obligations. A company’s core stability is revealed through its

: 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