According to Compounding Quality (@QCompounding), analyzing a company's financial statements already puts an investor ahead of 90% of the market, and they shared a link to a list of the top 10 financial ratios every investor should know to level up skills. Source: Compounding Quality on X, Sep 4, 2025, https://twitter.com/QCompounding/status/1963574199731036399 This post is presented as a practical resource to improve investment analysis of company financial statements. Source: Compounding Quality on X, Sep 4, 2025

According to @QCompounding, Free Cash Flow (FCF) is cash coming in minus cash going out and shows how much cash remains after expenses, source: @QCompounding. Traders use FCF and FCF yield to value equities and to gauge capacity for buybacks, dividends, and debt reduction, source: CFA Institute. FCF is a non-GAAP metric and definitions vary by company, so traders should verify each issuer’s calculation in filings, source: U.S. SEC.

According to @QCompounding, the Price-to-Sales (P/S) ratio is calculated by dividing a stock's share price by its revenue per share, offering insights into how the market values a company's sales. For traders, monitoring the P/S ratio can help identify undervalued or overvalued stocks, which is vital for portfolio allocation and risk management. Changes in equity valuations, especially in tech and growth sectors, often impact sentiment in the crypto market, as investors shift capital between asset classes based on perceived value and risk (source: @QCompounding).

According to Compounding Quality, stocks with a PEG ratio below 1.2 indicate strong value relative to their growth potential, suggesting these equities are priced fairly when accounting for expected earnings growth (source: Compounding Quality on Twitter, June 22, 2025). For crypto traders, monitoring this metric in related blockchain or crypto-exposed stocks can provide actionable signals, as undervalued growth companies often influence investor sentiment and capital flows into the cryptocurrency market.