One of the many ways investors can analyse whether a business or company is investment-worthy is to look at its financials. A company’s financials refer to various aspects of its financial performance, but they usually include the income statement, balance sheet, and cash flow statement. By examining these statements, investors can perform quantitative analysis. One widely used type of quantitative analysis is yield analysis.
The focus of this article will be on equities and stocks, and not bonds. Bonds have various yield components, such as yield-to-maturity and yield-to-cost, which may not be suitable in the quantitative analysis of stocks.
