🧪 Vital Profitability Ratios

By taking numbers from the Income Statement, you can calculate how "strong" a company's profit really is.

💡 The Analyst’s Secret: Quality of Earnings

Always check Earnings Per Share (EPS), which is usually found at the very bottom.

EPS = Net Income / Total Shares Outstanding.

This tells you how much of that bottom-line profit belongs to you for every single share you own.
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