Can you look at financial statement and comparable analysis position to do a 3 minute stock pitch...

Can you look at financial statement and comparable analysis position to do a 3 minute stock pitch about Netflix? Give 3 reasons why you would pick this stick, whether it would be on sell or buy and risk involved. consider price/earning too. Please provide all details

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Expert Solution

Firstly we can compare the financial statement for the analysis of the business position of the company, in this case, we are taking our company is Netflix.

Firstly when we are analysis the financial statement of the company we need to understand the Debt-Equity ratio maintained by the company. if the debt of the company is very high then the company is having fixed expenses in the nature of interest on the debt.

1) Therefore the most important factor for any company share sell or buy is the Debt-Equity ratio,

If the Debt-Equity Ratio is low or Nil then you should Buy the share.

If the Debt-Equity Ratio is high then you should Sell the share.

2) Secondly we should consider the cash flow of the company, the cash flow is also the most important factor to check the liquidity of the company to meet the current liability.

If the Cash flow of the company is High then you should Buy the share.

If the Cash flow of the company is Low then you should Sell the share.

3) Third and most important factor you should consider for a good stock is the earnings of the company.

If Earning of the company is High then you should Buy the share.

If Earning of the company is Low then you should Sell the share.

jeff jeffy answered 1 year ago

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