How to know if a stock is worth investing

Hey, continuing from my last article, this one will be short,I want to talk about the boring stuff about investing, this is crucial if you want to know the numbers of a company

but before that, I have a YouTube video regarding my article A great time to buy into the stock market is now because of what happened, go check it out.

Why it’s important to know revenue

One of the most important things about investing is knowing how a company makes its money, not just knowing but understanding. Knowing how the company makes money is the first step to investing, so that being said;

Revenue is the total sales made by a company, this is before expenses are considered, even before taxes. Most companies always strive to push revenue further because when they can generate more revenue they can generate more profit, provided they don’t increase the expenses.

The formula for total revenue is

Quantity sold + selling price= total revenue

Notice this does not include any expenses, but just the sales of the products or services of a business.

This revenue can be measured per month or yearly. It’s as simple as that, next week I’ll be covering profit, why it matters in investing, have a good night.