Financial Ratio Analysis Quotes

When it comes to investing, the saying ‘don’t put all your eggs in one basket’ couldn’t be truer, especially regarding the diversification of one’s investments. This phrase originates from a tale about a farmer who had a basket of eggs and was carrying it to market to sell. Along the way, he stumbled, and the basket fell, breaking all the eggs. The farmer learned from the bitter experience as he knew that it was foolish to put all of his eggs in one basket. So, he decided to distribute the eggs between more baskets so that if he lost one basket, he still had eggs to sell.

Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet”. You

Principle 14 - Fundamental Analysis Comes to the Rescue - The core of fundamental analysis lies in examining seven indicators: 1) debt; 2) debt/equity ratio; 3) return on equity; 4) earnings growth rate; 5) price/earnings ratio; 6) price earnings growth; and 7) price/sales ratio. These seven factors are the leading fundamental analysis indicators that can help you screen stocks based on financial analysis, not emotion, and select the most profitable ones for your portfolio. p177