: Measures how effectively management uses shareholder money to generate profit; 10%–20% is typically considered a good range. 2. Qualitative Check: The Business Model
: Measures financial leverage. A ratio under 1.0 is generally safer, as excessive debt can cripple future earnings. buying single stocks
: Invest in what you know. If you use and like a product, it's a good starting point for research. : Measures how effectively management uses shareholder money
: Measures how much you pay for $1 of earnings. A ratio of 15–25 is often considered "healthy," though this varies by sector. " though this varies by sector.