3A. Is a company making money?

A good company has revenues and profits that keep going up, and consistent profit margins. Below we show how MoneyinAfrica analyses this.

View a company’s revenue

  1. Visit the company’s page, scroll down and click on the ‘Analysis’ section. The revenue section will already be open.

  • If the company has revenue it shows it is making money and hopefully that revenue should be going up or remaining steady. Large drops indicate the company may be in trouble. ¬†Below is an example of a company that is not doing well.

View a company’s profits

  1. Visit the company’s page, scroll down and click on the ‘Analysis’ section. Click to open Profit.

  • If the company has profits it shows it is making money and hopefully that goes up together with revenues. Losses indicate the company may be in trouble. ¬†Below is an example of a company that is making losses – they happen when the company is spending more money than it makes.

View a company’s profit margin

  1. Visit the company’s page, scroll down and click on the ‘Analysis’ section. Click to open Profit Margin.

The company above is doing well, this is shown by a consistent profit margin from 2012 -2014 and better than its local peers. The profit margin has dropped in 2015, which could be a warning sign of upcoming troubles but the fact that it is better than local peers is a positive.

 

About Andrew Kwabena

The Editor of MoneyInAfrica

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