Play with US stocks, Episode 10! How does Buffett analyze high-quality stocks through financial reports?

🔺Gross profit margin: gross profit/revenue|>40%

🔺Ratio of sales, general and administrative expenses (SG&A) to gross profit: SG&A/gross profit|<30%

🔺Ratio of R&D expenses to gross profit: R&D/gross profit|<30%

🔺Ratio of depreciation to gross profit: depreciation/gross profit|<span -Ratio of interest to operating income: interest/operating income|<15%

🔺Ratio of taxes to pre-tax income: taxes/pre-tax income|in line with corporate tax rate

🔺Ratio of net income to revenue: net income/revenue|>20%

🔺Earnings per share (EPS) growth: EPS in the second year/EPS in the first year|shows positive growth