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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