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EDITORIAL: Sound Advice For Investors: Evaluating Company’s Financial Position Is Key

EDITORIAL: Sound Advice For Investors: Evaluating Company’s Financial Position Is Key
August 24
10:19 2018

Like your own financial position, a company’s financial position is important too.

A company’s financial position includes shareholder equity amongst the assets and liabilities.

For most companies their financial year starts from July ends in June.

As the last financial year lapsed most companies have had their Annual General Meeting while some will have theirs in the coming months.

For new investors to be able to know if a company is financially stable they will look at its financial position.

Evaluating the financial position of a listed company is quite similar, except investors need to take another step and consider the financial position in relation to market value.

A company’s financial position are of a major concern to investors and creditors.

As capital providers, investors and creditors rely on a company’s financial positions for both the safety and profitability of their investments.

More specifically, investors and creditors need to know where their money went and where it is now.

The financial statement of balance sheet addresses such issues by providing detailed information about a company’s asset investments.

The balance sheet also lists a company’s outstanding debt and equity components, and so debt and equity investors can better understand their relative positions in a company’s capital mix.

Just yesterday ATH had its annual general meeting at Holiday Inn Suva.

It was also discussed that apart from its financial status there was a call to have women on their board.

So if you are looking to invest or you are already an investor make sure to look through the financial statements of the company.

If you are still not sure then visit the South Pacific Stock Exchange who are more than capable to help you.



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