[Financial Report 101] 6 important indicators you must know when choosing stocks!

Hi Mooers! So far, moomoo has passed @moo_Live We have livestreamed more than 20 performance calls for everyone. Do you have a certain understanding of financial reports? Do you know what metrics we need to pay extra attention to? Let's learn together!

Earnings after tax per share and surplus per share refer to the ratio of net profit to total share capital.It is one of the important indicators for measuring the investment value of a stock, a basic indicator for analyzing the value of common stock, and an important indicator for comprehensively reflecting the company's profitability.

Tesla $Tesla(TSLA.US)$ The financial report will be released on January 27. The market expects earnings per share for the fourth quarter to be 0.6 US dollars, an increase of 131.7% over the previous year. The number of Tesla's Q4 global deliveries has broken the 180,000 mark, so can its earnings meet expectations?

Free cash flow refers to the maximum amount of cash that can be distributed to shareholders and creditors without jeopardizing the survival and development of the company.
Netflix, for example $Netflix(NFLX.US)$ In the 2020 Q4 results conference call, it was stated that the number of its users exceeded 200 million. At the same time, more and more users are willing to pay for content, and their cash flow will become positive in 2021 to achieve stock repurchases.

The price-earnings ratio (price-earnings ratio) is one of the most commonly used indicators to evaluate whether the level of stock prices is reasonable. It is the core indicator of the relative valuation method.The higher this value, the higher the popularity of investors in the market.
But is the higher the price-earnings ratio, the better? Nvidia $NVIDIA(NVDA.US)$ Told us a true story.Click to learn more

Gross margin represents the competitiveness and results of an enterprise.Higher gross margin indicates that the greater the profit margin of products sold by an enterprise, the stronger its business profitability. It also reflects that the core competitiveness of the enterprise is more prominent.

It is the net amount of total profit after paying corporate income tax. It is a measure of the final profitability of an enterprise in the current period.It is an important indicator of a company's profitability. Higher net interest rates indicate that the company's profitability is stronger. 
Intel, for example $Intel(INTC.US)$ In the 2020 Q3 earnings report, the data showed that Intel's earnings gradually declined in the 2020 quarter. In response, Intel Chief Financial Officer George Davis explained that growth was mainly concentrated in lower price areas, thereby weakening profitability.