Question

items in the financial statements that you think would be important to someone considering whether to invest in your company. Discuss your reasons for believing that these two items about the company would be important in making an investment decision.

Answer 1

Although there are many factors that are considered while making an investment if we want to talk about 2 items that would be important in making the decison will be-

1) Debt of the company and the ability of the company to repay the debt which can be seen by interest coverage ratio, this is an important item to consider because if the company has a lot of debt and are not generating enough profits then the company might soon be bankrupt.

2) Revenue of the company and the growth of the revenue, we need to understand the operations of the company and therir revenue streams. If the company's revenues are constantly decreasing and the industry's revenue is increasing, this means that the company is losing its market share Year on Year.