Stock Market Tutorials (Part 02)

Again today I am telling you other some important issues involved with stock market business.

Debit Ratio:

It is a very important indicator for stock market analysis. This indicator tells that how much a company is depends on debit for financing its assets. So if the ratio is high than it will be very risky to involve with this company share. So before invest in any company look in their financial statements (quarterly or annual). Generally debit ratio closer to 1 is perfect for investment. Other hands some investor think that if a company has higher debit ratio then it is an indication of big activities of the company and stability but for small investor it is alarming.

Profit after Tax (PAT):

According to the definition, after paying all the taxes the net profit earned by the company is PAT which is another prime indicator of the company stability. You will find this information in their financial statement. If you see that its increasing periodically than it is a good sign for investment otherwise should be alert and leave the company share if they fail to profit for a long time.

You can view my other posts for more…………


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