2007-12-23 13:41:49 · 4 answers · asked by kay-kay 1 in Business & Finance ➔ Other - Business & Finance
Statement of changes in financial position or cash flow statement
2007-12-23 13:46:41 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Read the yearly or quarterly report. It will contain a P&L (Profit and Loss) statement as well as a cashflow statement. Look at their debt and see if they can afford to pay back what they borrowed. Look at their products or services and see how much they have booked for revenue next year. If they do not have a lot of orders already booked (signed contracts), then some risk is present. Also, even if a company is profitable, it may still go bankrupt if there is litigation against it. They should disclose that in the report or you can search the online finance boards for any pending litigation.
2007-12-23 21:57:20 · answer #2 · answered by Moe A 3 · 0⤊ 0⤋
the statement of cash flows, many companies may look profitable because their revenues are high; however this revenues can be on account (credit), which means they did not have collected the money yet. the statement of cash flows shows you the net cash inflow for a company from operating activities, fincancing and investing.
2007-12-23 21:57:46 · answer #3 · answered by acg 2 · 0⤊ 0⤋
Statement of cash flows
2007-12-24 10:40:38 · answer #4 · answered by trunorth 6 · 0⤊ 0⤋