I am new to investing and just started practising on a simulator. I wrote a program on Matlab and to analyse various fundamental aspects of a company. These are the aspects computed my program,
A. Income statement 1. Revenue growth % (each year for last 5 yrs and each quarter for last 5 quarters) 2. Cost of revenue growth % (each year for last 5 yrs and each quarter for last 5 quarters) 3. Operating income growth % (each year for last 5 yrs and each quarter for last 5 quarters) 4. Net income growth % (each year for last 5 yrs and each quarter for last 5 quarters) 5. Total operating expense growth % (each year for last 5 yrs and each quarter for last 5 quarters) 6. Gross profit margin % (each year for last 5 yrs and each quarter for last 5 quarters) 7. Operating profit margin % (each year for last 5 yrs and each quarter for last 5 quarters) 6. Net profit margin % (each year for last 5 yrs and each quarter for last 5 quarters)
B. Balance sheet 1. Cash. Eq growth % (each year for last 5 yrs and each quarter for last 5 quarters) 2. Longterm debt growth % (each year for last 5 yrs and each quarter for last 5 quarters) 3. Total equity growth % (each year for last 5 yrs and each quarter for last 5 quarters) 4. Working capital % (each year for last 5 yrs and each quarter for last 5 quarters) 5. Total accounts receivable growth % (each year for last 5 yrs and each quarter for last 5 quarters) 5. Total accounts payable % (each year for last 5 yrs and each quarter for last 5 quarters 6. Total inventory growth % (each year for last 5 yrs and each quarter for last 5 quarters
C. cashflow Statement 1. High quality earnings growth % (each year for last 5 yrs and each quarter for last 5 quarters 2. Free cashflow growth % (each year for last 5 yrs and each quarter for last 5 quarters 3. Company lifespan growth % (each year for last 5 yrs and each quarter for last 5 quarters
D. Discounted cash flow to determine if the stock is cheap (projected to 5 years)
So my question is with all these information and plots, how does on decide if should or should not invest in a company. Since some of these aspects are positive for some companies and negative for some others. It is also worthy to note that penalising a company just because of a few negative aspects are erroneous. I was thinking of a implementing a points systems to assist my decision. Any thoughts on this? thanks
Submitted February 13, 2017 at 05:51AM by mylifeisepic http://ift.tt/2kiPerE
