3Yr·

--Key figures for stock analysis Part II--

Hello everyone,


Since the last article was surprisingly well received and other key figures were mentioned in the comments, I thought that a second part wouldn't be so wrong. Here I have picked out key figures that I personally find interesting or important.


Feel free to write your opinion in the comments! Which key figure(s) do you think are very important? What is the first thing you look at when you look at a company?


Click here for Part I: https://app.getquin.com/activity/XrdHVVycUn



𝗘𝗣𝗦

The earnings per share (EPS) figure describes the profit of a listed company per share in circulation. The figure is calculated on either a quarterly or annual basis and is calculated by dividing the (quarterly or annual) net profit of a company by the number of shares in circulation. EPS provides a basic measure of a company's profitability. The EPS value can also be negative if it is a loss-making year (e.g. Coinbase 2022, Q1 EPS: -1.26).


Example:

After a strong year, ThisIsEmil-AG generates a profit of EUR 4 million. A total of 500,000 shares are outstanding. This results in a profit of 8 euros per share.


Calculation: € 4,000,000/500,00 shares= € 8/share



𝗩𝗲𝗿𝘀𝗰𝗵𝘂𝗹𝗱𝘂𝗻𝗴𝘀𝗴𝗿𝗮𝗱

The gearing ratio indicates how much equity covers a company's net financial liabilities. The more the company relies on borrowed capital, the higher the gearing ratio.


On the other hand, a high debt-equity ratio is not always bad, as the "leverage effect" can sometimes lead to a higher return on equity if the company earns more money with the borrowed capital than it pays in borrowing costs. Leverage should be understood differently depending on the industry. While a gearing ratio of 10 to 70 percent is typical in most industries and 100 percent is close to insolvency, a real estate group's gearing ratio of 150 percent may even be acceptable.


This ratio should therefore only be used for comparison purposes for companies in the same sector.


Example:

ThisIsEmil-AG has a total of € 300,000 in equity and € 700,000 in borrowed capital. The gearing ratio is therefore 233%. The calculation is as follows:


Calculation: € 700,000 / € 300,000 = 233%



𝗠𝗮𝗿𝗸𝘁𝗮𝗻𝘁𝗲𝗶𝗹

I personally also find the market share figure very interesting. It indicates what share of the total market a company achieves with a product or service. Most companies strive to increase their market share, which generally leads to lower costs and therefore higher profits due to economies of scale. Companies in niches can also be successful with a low market share. In order to calculate the market share, the market must first be defined.


For example, according to Statista, the market share for social media in April 2022 was 75.1% for Facebook, 5.69% for Instagram and 5.69% for YouTube. getquin is of course also right at the top!


Example:

ThisIsEmil-AG achieved a turnover of € 10 billion in 2021. With a global market volume of € 15 billion, the AG would have a market share of approx. 66%


Calculation: € 10 billion / € 15 billion= 0.667

0,667 x 100= 66,7%



𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄

Cash flow refers to the inflow (or outflow) of liquid funds, such as cash, cash in hand or checks. The value answers the question: "How much money was generated?". It is important to note that this is not a profit. The cash flow thus shows the financial strength of a company and how heavily a company is dependent on other lenders (loans).


There is a direct method of calculating cash flow and an indirect method.


Example:

In the direct method, cash inflows are calculated as cash outflows. ThisIsEmil-AG only had 4 business transactions in the beginning in 2011:

- Revenue for a sale in the amount of € 100,000

- Payment of salaries for € 60,000

- Depreciation in the amount of € 15,000

- Provision for promise of a guarantee € 10,000


Invoice:

100.000€-60.000€= 40.000€


This is therefore a cash inflow of €40,000. Depreciation and provisions are not taken into account, as these are not payments.



𝗤𝘂𝗲𝗹𝗹𝗲𝗲𝗻:

https://bit.ly/3yLiuw7

https://bit.ly/3Ly9Svu

https://bit.ly/3LxzhFJ

https://bit.ly/3Lw5bCK

https://bit.ly/3Pvhv9n

https://bit.ly/3wwQNWt

Picture: Justin Lane/EPA



The key figures presented are of course just a selection of many. What are your steps in stock analysis? 🤔

attachment
53
22 Comments

profile image
No idea why someone makes here 🆘 to it, good post 👌🏻
13
profile image
@Divmann thank you 😊
profile image
@Divmann because joke 🤓
profile image
@Lorena Was just not a funny
profile image
@Divmann yes he is also not from me 🤡 from me there was the rocket 🚀
1
profile image
@Lorena Yes this is funnier
1
profile image
Gives nen 🆘 from me, because I do not see an ISIN to ThisIsEmil-AG. Oh yes and here is your @ccf
6
profile image
@KapriolenSonne haha at yahoofinance there are certainly 🤫
1
profile image
2
profile image
@AbbasAdejonwo so much red from the SOS I can not use. 😂Makes my depot already for me. If red then: ❤️
profile image
When does ThisIsEmil-AG Earnings? I'm going long 🚀 @ccf
1
profile image
@Lorena should come soon! 😮
1
profile image
@TheAccountant89 can you take apart Mal thisisemil-Ag? @ccf
1
profile image
@GoDividend neee more and more of it 👌
profile image
@TheAccountant89 i meant analyze..🤭
profile image
@GoDividend Still need to talk to my ThisIsEmil trustee in the Philippines... 😉 A little pay polish
profile image
1
profile image
Super contribution! 👍
1
profile image
ThisEmil Ag confuses me a lot. Numbers must be fudged there. The key figures do not match at all 🤔
profile image
@StrgETF Will fit 😆
Deleted User
3Yr
Comment was deleted
profile image
@Vladimir_Pivnev Wouldn't the FC ratio be more appropriate? In other words, the ratio of debt capital to total capital (FK/GK)? Or do you mean something else? 🤔
Join the conversation