Hey /r/investing!
So the title is pretty much self-explanatory so I won't give much intro aside from the fact that I'm a first-year finance student and have been given an assignment on investigating the financial position of a company and to advise on a five-year investment for that company.
I've chosen Netflix, because it is both relevant and popular in modern usage but also because generally I feel as if it would be a pretty safe investment from the little understanding of finance I have. Essentially what I have to do is gather information on said company from its annual earnings report and other sources to then produce a written report (around 2000 words im aiming) in which I detail if investing in said company would be a wise choice.
The key data I've been told to look at is mostly contained in the annual report (the usual profit %s, Liquidity and Efficiency ratios, return on investments etc) as well as other factors in the news which might affect its standing in the future.
Basically, what I've come to you guys for, without asking to do my report for me, is for advice on what I should specifically focus or look into in the activity of a company. Are there any important/overlooked figures in the earnings report which might provide valuable information? Or are there any specific positions from which I can analyse a company to perhaps give me an edge over other typical analyses carried out? From this task I'd ultimately like to get a 'good' understanding of how to interpret the financial standing of a company, and how to distinguish between positive or negative performance of a firm via the information they release.
Any suggestions would be greatly appreciated, I'm not 100% lost on what I'm meant to do, but it would be nice to have some guidance from some (supposedly, i'm sure there are one or two of you here) real investors/traders.
Submitted February 05, 2017 at 06:38PM by SixteenSaltiness http://ift.tt/2ldo5TQ
