One of the first things I do when researching a company is look at the quantitative data. This means going through the boring process (well boring for some people, I think it’s kind of fun) of reading the financials: income statement, balance sheet, and statement of cash flows. The first data point that I always look at are the margins the company is producing. Why?
How do businesses make money? -Buffetology (Buffet, Clark)
- By having the highest profit margins possible
- By having the highest inventory…