What are the best fundamental analysis indicators?

Profitability Indicators

1️⃣ Earnings Per Share (EPS): Measures a company's profitability per share. Higher EPS indicates better profitability. 💵📊
2️⃣ Return on Equity (ROE): Assesses how efficiently a company generates profits from shareholder equity. 📈💡
3️⃣ Net Profit Margin: Shows the percentage of revenue that becomes profit. A high margin reflects strong cost control and profitability. ✅📑

Valuation Indicators

4️⃣ Price-to-Earnings Ratio (P/E): Compares a company’s share price to its earnings. A lower P/E often suggests undervaluation. 🔍💹
5️⃣ Price-to-Book Ratio (P/B): Evaluates a stock’s market value relative to its book value. Useful for identifying undervalued stocks. 📚📈
6️⃣ Dividend Yield: Indicates how much cash a company returns to shareholders relative to its stock price. Ideal for income-focused investors. 💰📤

Efficiency Indicators

7️⃣ Asset Turnover Ratio: Measures how efficiently a company uses its assets to generate revenue. 📊⚙️
8️⃣ Inventory Turnover: Highlights how effectively inventory is managed and sold. Useful for manufacturing and retail sectors. 🏭📦

Liquidity and Solvency Indicators

9️⃣ Current Ratio: Assesses a company’s ability to pay short-term liabilities with short-term assets. ⚖️💵
🔟 Debt-to-Equity Ratio (D/E): Analyzes financial leverage and risk level by comparing total debt to shareholder equity. 📈💡

These indicators provide a comprehensive view of a company’s performance and are essential tools for informed investment decisions. 📊🚀