What financial metrics are included in the FA analysis?

In financial analysis, particularly in fundamental analysis (FA), various metrics are employed to assess a company's performance and value. Revenue and net income are critical components of this analysis. Revenue, often referred to as sales or turnover, provides insight into a company's ability to generate income through its business operations. It serves as a top-line indicator of financial health.

Net income, or profit, is derived after subtracting all expenses, taxes, and costs from the total revenue. This figure is vital for evaluating a company's profitability and overall financial performance. It reflects the effectiveness of the company's operations, as it accounts for all costs and expenses incurred in generating revenue.

While other metrics like cash flow, market share, and investment ratios are valuable in their own right and can provide additional context about a company's financial situation, revenue and net income specifically focus on a company's ability to generate profits and sustain operations, making them central to fundamental analysis.