Commentary

Why investors should look beyond companies' bottom line

Investors should not just rely on net income as the sole measure of financial performance

Investors are always interested to know how a company is performing financially. Headlines and attention are usually focused on the "bottom line" - the net profit or net income.

Many incorrectly assume all the line items that make up net income are equal in importance to the users. This is not the case.

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A version of this article appeared in the print edition of The Straits Times on October 07, 2019, with the headline 'More than the bottom line'. Print Edition | Subscribe