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