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Weekend Gyan Ep3:: Financial Factors to validate before investing in any company

Profitability – Free Cash Flow

Healthy – Interest Coverage

Quality Development– ROCE, ROA, Margins

Valuation – EV/EBITDA, FCF Yield

Governance – Dividend, Buybacks

Cash Efficiency – Cash Conversion Cycle

Company Growth – Source of Funds for CAPEX Quality- ROIC (Return on Invested Capital)

Profitability- PAT Growth- Industry growth,balance sheet strength, sustainable growth rate(not much above roce)


Prefer companies with net cash or zero debt Business growth + Entrepreneur capability + expanding with internal accruals



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FunTech Team

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