Before you invest in a company’s stock, get a hold of its annual report and search out the following information. This data will let you know if a company’s stock is worth investing in.
Cash flow: The company should be a cash generator.
Debt: The number should be lower than, or about the same as, the previous year’s.
Earnings: The bottom line should be higher than the previous year’s.
Equity: The number should be higher than the previous year’s.
Sales: This top-line number should be higher than the previous year’s.
