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Please answer the following question: "Your grandmother
sends you a large check for your birthday, asking that you
use the money to buy shares of stock in a company. She
recommends that you review the company's financial
statements before investing. What can a company's financial
statements tell you about the investment potential of its
stock?"
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Answer Posted / mitesh
Generally financial statement reflects the financial
condition of the firm in terms of profit growth and
sales.There are different type of financial ratio which can
be calculated after seing the financial statement like Eps
ratio tell ur how much co. can pays to its
shareholder,other ratio are PE,Debt-Equity and many ratio
are relyy impotant to evaluate company performance
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