Stewardship Finance Academy/How To Invest In Profitable Companies

  • $49

How To Invest In Profitable Companies

Unlock the power of smart investing!

Take this course to discover how analyzing profitability ratios, dividends, and cash flows can supercharge your financial acumen.

This course isn't just about stocks; it's your path to personal and professional growth. Learn to spot promising investments, make informed decisions, and gain a competitive edge in the market. Dive deep into financial metrics and create a roadmap for your investment success.

Don't miss this chance to boost your financial IQ and shape your future.

Who is this course for...

  1. If you're a Small Business Owner looking to enhance your financial management skills and make informed decisions for your business... This course is for you!

  2. If you're an Aspiring Investor eager to dive into the world of stocks and financial markets... This course is for you!

  3. If you're a Finance Student seeking to gain practical knowledge and insights beyond the classroom... This course is for you!

  4. If you're a Financial Analyst aiming to sharpen your analytical skills and stay updated with the latest industry trends... This course is for you!

  5. If you're a General Learner with a curiosity for understanding how businesses thrive and make sound financial decisions... This course is for you!

After completing this course, you will be able to

  1. Master Financial Ratios: Learn how to calculate and interpret key profitability ratios for assessing a company's performance.

  2. Evaluate Investment Opportunities: Acquire the ability to analyze stocks and investment opportunities effectively.

  3. Optimize Business Finances: Gain insights into optimizing cash flow, and maximizing profitability for your business.

  4. Enhance Decision-Making: Develop the skills to make informed financial decisions in both personal and professional contexts.

Instructor's Insight

The course you're about to embark on is a critical journey into the world of profitable investing...

In today's complex financial landscape, it's more important than ever to make informed investment decisions. This course will equip you with the knowledge and skills necessary to identify and invest in companies with promising long-term prospects and sustainable profitability.

At its core, this course emphasizes the significance of profitability ratios and dividend analysis. You'll learn how to assess a company's ability to generate profits, efficiently manage its resources, and provide returns to shareholders. We'll dive into key ratios like Gross Profit Margin, Operating Margin, Return on Assets, Return on Equity, Net Profit Margin, and many more. These ratios will be your compass in evaluating the financial health of companies across various industries.

Our course also highlights the importance of understanding industry-specific factors, trends, and benchmarks to make meaningful comparisons. You'll gain hands-on experience with practical exercises and a Ratio Analysis Workbook, giving you the confidence to apply these concepts in real-world scenarios.

By the end of this course, you'll be equipped to make informed investment decisions, avoid common pitfalls, and build a portfolio that stands the test of time. Investing in profitable companies is not just about numbers; it's about securing your financial future. Join us on this journey, and together, we'll unlock the secrets to successful investing. Your financial prosperity awaits

Contents

How To Invest In Profitable Companies

Are you looking to invest wisely and secure lasting profits? Discover the essential principles of investing in profitable companies that stand the test of time. Learn how to differentiate between potential and profitability, and why the latter is crucial for long-term success. Dive into the intricacies of sustainable investing, understanding that unprofitable companies often rely on intangible potential, leaving investors vulnerable. Explore the risks of investing in businesses without a solid profit foundation and uncover the importance of consistent profitability for business survival. Start building a resilient investment portfolio today by understanding the keys to profitable and sustainable investments

Lesson Introduction

Good Long Term Prospect

Explore the art of investing in companies that promise not just short-term gains, but long-term prosperity. Learn the vital considerations that can help you distinguish between fleeting potential and enduring profitability. This comprehensive guide takes you on a journey to uncover the key factors that determine whether a company will thrive in 20, 30, or even 40 years.

Good Long Term Prospects
Example: Coca-Cola
How to determine if a company will be around in 30 years

Ratio Analysis

Dive into the world of Ratio Analysis and discover its vital role in assessing a company's profitability. Understand the significance of financial ratios in gauging past and current performance, evaluating future risks, and determining a firm's investment potential. Explore various categories of ratios, including Profitability, Liquidity, Solvency, Efficiency, and Valuation Ratios, each shedding light on different aspects of a company's operations. Master the art of financial analysis with this comprehensive guide to Ratio Analysis

Introduction to Ratio Analysis
Grouping of Ratios

Profitability Ratios

Delve into the world of profitability ratio analysis to uncover crucial insights into a company's profit-generating capabilities. Discover why profitability is pivotal for both shareholders and creditors, influencing dividends and debt coverage. Explore the two categories of profitability ratios—margins and returns. Learn how to contextualize these ratios through industry and trend analysis. Gain a deeper understanding of the business behind the numbers, as ratio analysis combines quantitative data with industry-specific knowledge for informed investment decisions.

Profitability Ratios

Profitability Ratios Analysis

Explore the significance of the Revenue Growth Ratio in assessing a company's expansion and profitability. Learn how this ratio goes beyond mere revenue snapshots, offering valuable insights into a business's growth trajectory. Discover its role in identifying trends and predicting future performance. Compare companies within your investment portfolio, perform trend analysis, and employ benchmarking techniques to make informed investment decisions. Get ready to analyze financial ratios effectively with this informative guide.

Revenue Growth Ratio
How to analyse using ratios
How to use SFA Ratio Analysis Workbook

Getting The Ratios from Morningstar

Discover valuable insights into accessing and analyzing financial ratios for your investment decisions. Learn where to obtain these ratios for free and how to calculate them from financial statements.

Getting the ratios from Morningstar

Ratio Analysis Process

Ratio Analysis Process

Earnings per Share (EPS)

Dive into the world of Earnings per Share (EPS) and discover  pivotal role in investment decisions. Learn how to calculate EPS and understand its significance for shareholders. Explore why EPS is the most relied-upon metric by investors and how it's reported on income statements. Uncover the importance of tracking EPS trends, spotting trouble signs, and comparing figures across companies and industries. Get equipped to make informed investment choices with this comprehensive guide.

Earnings per Share (EPS)

Gross Profit Margin

Discover the significance of Gross Profit Margin in evaluating a company's core business profitability. Learn how this ratio, calculated from the income statement, reveals the earnings a company generates after covering direct production and distribution costs. Understand why investors favor Gross Profit Margin percentages for cross-company comparisons and how they vary across industries. Explore the importance of a higher Gross Profit Margin and why it's not the sole indicator of profitability. Make informed investment decisions by analyzing this essential metric.

Gross Profit Margin

Operating Margin

Explore the significance of the Operating Margin Ratio, in assessing a company's operational efficiency. Learn how this ratio measures profitability before interest, tax, and other expenses. Understand why a higher Operating Margin Ratio is favorable and how it includes non-production overheads. Discover how this metric aids in industry comparisons and reflects managerial competency. Gain insights into the impact of pricing, raw materials, and labor costs on a company's operating margin.

Operating Margin

Return on Assets (ROA)

Return on Assets (ROA), a vital financial metric that reveals how effectively a company utilizes its investments in assets to generate profits. Learn how ROA measures a company's ability to turn its assets into revenue. Understand that while higher ROA ratios are preferable, the true value of this metric emerges when comparing companies within the same industry. Discover how an increasing trend in ROA signifies a company's improved asset utilization and profit generation prowess.

Return on Assets

Return on Equity (ROE)

Explore the significance of Return on Equity (ROE), a pivotal financial metric, in assessing a company's profitability and efficiency. Understand that ROE represents how effectively a company utilizes shareholders' equity to generate profits, making it a crucial factor for investors. Dive into the ideal ROE range, historical averages, and the impact of leverage on this metric. Discover why relying solely on ROE for investment decisions can be misleading and why debt management matters.

Return on Equity (ROE)

Net Profit Margin

Discover how Net Profit Margin, a crucial profitability metric expressed as a percentage, reveals the profitability of a business. Learn how it differs from Gross Profit Margin, accounting for all indirect expenses. Explore the significance of Net Profit Margin for investors and creditors, ensuring profits are sufficient for dividends and loan repayments. Understand how a high Net Profit Margin can attract competitors and indicate unique advantages, while a low margin necessitates expense management. Dive into the world of financial analysis with this essential metric for assessing a company's profitability.

Net Profit Margin

Dividend Ratios

Learn about dividend ratios and how they affect your investments. Discover the importance of Dividend Per Share (DPS), Dividend Payout Ratio, Dividend Yield, and Dividend Cover in evaluating a company's financial health and its ability to provide steady returns to shareholders. Understand the significance of these ratios for investors seeking income from their investments, and how they can help you make informed investment decisions. Explore real-world examples and practical insights to navigate the world of dividends and maximize your investment strategy

Introduction to Dividend Ratios
Dividend per Share
Dividend Payout Ratio
Dividend Yield
Dividend Cover

Free Cash Flow (FCF)

Discover the significance of Free Cash Flow (FCF) in evaluating a company's financial health and growth potential. Learn how to calculate FCF and why it's a crucial metric for investors. Explore the warning signs of negative FCF and its implications for a company's sustainability. Get insights into cash flow generation, earnings, and debt, helping you make informed investment decisions.

Free Cash Flow (FCF)

Operating Cashflow to Sales Ratio

Explore the crucial relationship between a company's operating cash flow and its sales, a key indicator of financial health and growth potential. Learn how a higher operational cash flow to sales ratio is a positive sign, signaling the company's ability to finance growth. Discover the warning signs of a declining ratio, which can indicate underlying problems in cash flow management. Gain insights into the importance of consistent and sustained performance in converting sales to cash. Get ready to calculate this essential ratio for your investment analysis.

Operating Cashflow to Sales Ratio

Introduce SFA Stock Investment Checklist

Discover how to use SFA Stock Investment Checklist to to determine which company stands out as a potential investment leader, and explore the checklist to evaluate its qualities. Understand the significance of profitability ratios and gain insights into a simplified investment process.

Introduce SFA Stock Investment Checklist

SFA Ratio Analysis Workbook

Use this workbook to practice your ratio analysis

Download here - SFA Ratio Analysis Workbook