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When you look at a company's financial statement, look at th...

When you look at a company's financial statement, look at the growth rate of revenue/profit. A fundamentally strong company will have a consistent increase in revenue and profits too. While there can be a few bad years when the revenue and profits drop, overall, there should be a consistent increase.

If you find that the revenues are highly inconsistent, you must treat it as a red flag and investigate further. The exception here is commodity companies. Commodity companies often face inconsistent revenues due to the volatility in commodity prices.

The higher the interest coverage ratio, the easier it is for a firm to manage its debt. If the interest coverage ratio is less than 1, it basically means that the company isn't even able to generate enough profit to pay off its interest expense and is a cause of concern
$Vodafone(VOD.US)$ $Apollo Investment Corp 6.875% Prf 15/07/43 Usd25 D(AIY.US)$
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