what is your contribution/thought on this forum below.

Investing/Buying a business according toCompanyFinancials

As a potential investor in a firm or buying a business, it is essential tobe abased in the company's financials prior to investingfor severalreasons.Revenue,net income, debt-to-equity ratio and price - toearningsratiowould be the financial areas that I would look at before investing in a company.Before buying a businessin my opinion it is important toresearchthe Chief Executive Officer, business model and competitive advantages as well as prior andanticipated future financial if any.

Why would anyone invest in a business without knowing the net income?Unless, your wonderfully wealthy and profit would matter or affect your daily living.Net income, also known as profitmargins/earningsor"bottom line",netincomeis simply the amount of money a company earned from sales after expenses and taxes have beenpaid.(IA)

Looking at thedebt-to-equityratio, you can find out how muchdebta company carries compared to the amount ofequityshareholders have in the company.DTER is used as a safety measure, the debt-to-equity ratio tests how well the company can repay its debt obligations if the company runs into serious financial problems. Generally, the lower the debt-to-equity ratio a company has, the less risky it is to you as an investor. (IA), (ETO)

Investing a company with strong financialsis just one part to take in consideration.Researching and doing fact finding on theCeo is another piece to think about adding to the puzzle before taking the possible risk.Knowing the founder or operator's vision, intentions andmission that was implemented for business is imperative.In my opinion, "Intentionsare everything".This ties into the next point,which isthe business model.Studying the business model itself can help you decide ifthis is a good fit for oneself and the direction you want to go,since this thestrategy that a company uses to maximize its profit in itsindustry.

In closing, thecompetitiveadvantage would be the other fieldresearch before investing.Healthy competition is good especially forbusiness, in my small opinion.Acompetitiveadvantage oreconomicmoat iswhen a company has a leg up over its competitors through its superior products, patents, brand power, technology or operating efficiency.(IA)

Competitive advantage is the wall that keeps competitors from takingmarket shareand keeps that company more profitable -- and makes it a better investment for you -- over the long term.(IA)