Cash is the king, they say. If a company does not have enough cash to pay its staff or workers, it will be in trouble. All utility bills, phone bills or payments for raw materials must also be settled in time. Therefore it is essential that you look into the Cash Flow Statement (CFS) to see how money flows in and out of the company. Avoid companies that have cash flow problems.
The CFS is one of the three important financial statements in an annual report. The other two are the Balance Sheet and the Income Statement. If you have not studied accounting before, reading and understanding these statements will not be easy.
Nothing of value is ever achieved without hard work. So, no matter how hard it is, you must upgrade yourself if you want to become competent to compete with others in the stock market. Don't forget that some of the finest brains are there.