Do you consider a stock's sales trends when choosing among names? Sales are the primary source of profits, so a sales analysis should be high on your checklist. To illustrate, we ran a screen. We began by creating a universe of stocks that either use or produce clean sources of energy, then we screened that universe for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue. We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period. For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research. ... Continue to read.
In a company sales analyst Conduct in-depth quantitative analysis to assist in sales planning.
ReplyDeleteSales Analysis