One in three main thing that can be used to evaluate a company whether to invest or to learn is to analyse it's cash flow statement. It is equally important as reviewing the balance sheet and p&l statement. Everyone keenly focus on the numbers in these colomns before investing. Everyone should if he is to invest. But cash flow, they mostly give less importance. One reason is that they just need to know whether it is positive or negative. If it is positive, good. Negative, then need to analyze further more deeply. We can get a sense of the operational and financial activities from cash flow statements. And by combining our findings from here to over-all findings will lead to a good sense of this company.
Seasons are mostly beneficial to those who are making whole sales. The sales are driven highly with anticipation of belief that people are ready to spend money than before. It is beneficial to both the customer and seller. The main reason is the volume. In normal days, people won’t go shopping vividly and manufactures are less active. We are taught to believe that during season sales companies sell products with more discount. Sometimes with buy one get one offer. No one wants to bet large amount of money during non-seasonal days. We wait for discount to hit thus to save money. And when the discount breaks, huge amount of masses place the order. This is way more than actual sale. Discounts are certain and hence the profit. On the flipside, companies will profit like hell these days. They employ more workers during this time and install many outlets. They know they can swap money like never before. It is confusing to see who makes real profit. Both sides cannot maintain the...
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