【Financial Report 101】When choosing stocks, you must understand 6 important indicators!

Hi, mooers! So far, moomoo has conducted more than 20 earnings conference calls @moo_Live for everyone, have you gained a certain understanding of the financial report? Do you know which indicators we need to pay special attention to? Let's learn together!

After-tax earnings per share, also known as net income divided by the total number of sharesIt is one of the important indicators to measure the investment value of a stock, a fundamental indicator for analyzing the value of ordinary stocks, and an important indicator that comprehensively reflects the company's profit-making ability.

tesla $Tesla (TSLA.US)$ The earnings report will be announced on January 27th, with an expected EPS of $0.6 for the fourth quarter, a year-on-year growth of 131.7%. Tesla's Q4 global deliveries exceeded 0.18 million units. Can its earnings meet expectations?

Free cash flow refers to the maximum amount of cash that can be distributed to shareholders and creditors without jeopardizing the survival and development of the company.
For example, Netflix $Netflix (NFLX.US)$ During the Q4 2020 earnings conference call, Netflix announced that its user count exceeded 0.2 billion and more and more users are willing to pay for content. Its cash flow will turn positive in 2021, enabling share buybacks.

The price to earnings ratio (PE ratio) is one of the most commonly used indicators to assess whether the stock price level is reasonable, and is the core indicator of relative valuation. The higher this value, the more welcomed investors are in the market.
But is a higher PE ratio really better? Nvidia $NVIDIA (NVDA.US)$ told us a real story.Click to learn more

The gross profit margin represents a company's competitiveness and results.The higher the gross profit margin, the larger the profit margin of the products sold by the company, the stronger the business profitability, and also reflects the more prominent core competitiveness of the company.

It is the net amount of profit after the company pays corporate income tax, which is a measure of the company's final profitability.It is an important indicator that reflects the profitability of the company. The higher the net profit margin, the stronger the company's profitability.
For example, Intel $Intel (INTC.US)$ In the 2020 Q3 financial report, data shows that Intel's earnings for the quarter in 2020 gradually declined. In response to this, Intel's Chief Financial Officer, George Davis, explained that the growth was mainly concentrated in lower-priced areas, thereby weakening profitability.