Fundamental Analysis (Part 2)

Fundamental analysis helps you determine whether a company is good or bad choice for investment. Imagine that you are a venture investor or a bank and you have to decide whether a company deserves a loan or investment. How can you determine if this company deserves your capital?

Here are questions that can help you make a decision:

Does the company make long term gains?
Are the profits increasing or decreasing?
Is the company a leader in its sector?
The sector expands or shrinking?
Can a company pay its bills adequately?