Why are some companies with good budgets, profits growing, but stocks falling?

Why are some companies with good budgets, profits growing, but stocks falling?

Sometimes investors have doubts. Why are some companies with good budgets, profits growing, but stocks falling? But another company's budget did not come out very well. But the stock went up because of market expectations. and financial statements that are expected to come out well but not as good as expected

Stock price based on market expectations.

Another factor that can determine the stock price is investor expectations Most of them tend to flock to buy during the purchase period. with the hope of generating profits in the future The stock price therefore increased. Therefore, the reasons why the budget was good but the stock fell were as follows:

- Caused by Sell on Fact, the stock price has been up for a long time.

Sell on Fact is selling to make a profit. when there is good news The price of the stock will increase to almost full value.

- The budget came out to grow less than expected.

It is a pre-evaluation. projected beyond the actual budget that came out

Financial statements can indicate skill in running a business. If understanding the correct financial statements It will help make more investment decisions. But if you can't understand thoroughly There may be a chance that the investment decision will be wrong.

There are 5 types of financial statements:

1. Statement of Financial Position

It is a statement that represents the stability and prosperity of the business. There are 3 things that should be emphasized.

Assets : are current or non-current assets.

Liabilities: have short-term or long-term debt

Capital : What is the ratio of capital compared to liabilities?

2. Statement of Comprehensive Income

It is a statement that shows the performance of that accounting period, how well the company is doing by looking at revenue, cost, profit, both gross before interest and tax. to net profit

3. Cash Flow Statement

It is a statement showing cash received and paid out. You should also look at cash flow. especially during the economic downturn

4. Notes to the statements

It's a list of important accounts. So that investors can check the transparency in the financial statements.

5. Statement of Changes in Shareholders' Equity

It is a statement to look at the movement of capital. that has changed, increased or decreased during the year

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