Before investing in a long-term company, you must take into consideration these 5 points
1) Liquidity: can this company pay its debts in the short term?
2) Solvency: can this company pay its debts in the long term?
3) Efficiency: does it generate enough sales?
4) Profitability : Does this company generate profits in the long term?
5) Valuation: is it overvalued by investors?
1) Liquidity: can this company pay its debts in the short term?
2) Solvency: can this company pay its debts in the long term?
3) Efficiency: does it generate enough sales?
4) Profitability : Does this company generate profits in the long term?
5) Valuation: is it overvalued by investors?