Buying a share means owning part of a company. Whether it’s a household name like Woolworths Group or a global brand like Disney, understanding the business behind the ticker symbol helps you make informed decisions.
Familiarise yourself with the basics:
For example, Woolworths Group operates supermarkets, liquor stores, and retail services across Australia and New Zealand. Disney earns revenue from theme parks, movies, streaming (Disney+), and merchandise.
A company’s annual report is a goldmine of information and can provide investors with:
You can find these reports on the company’s website under ‘Investor Centre’ or via the ASX for Australian companies.
Here are some common metrics and what they mean for investors:
What it tells us:
Total income
Example:
Disney’s FY24 revenue was reported at over $89 billion USD
What it tells us:
Earnings after expenses such as tax and overhead costs
Example:
Woolworths reported a net profit of $1.62 billion in FY24
What it tells us:
Profit per share
Example:
Higher EPS can indicate stronger profitability for investors
What it tells us:
Income investors could make from dividends
Example:
Woolworths’ yield is around 3% (as of mid 2025)
What it tells us:
A company's financial leverage ratio
Example:
Lower ratios suggest that a company may be less reliant on debt
Investors should always opt to research stocks and companies using trusted sources of information, including:
Relying solely on one years’ worth of company data could provide an investor with skewed results. Always ask:
For example, Amazon has shown strong revenue growth over the past decade, but its profit margins fluctuate due to heavy reinvestment in logistics and technology.
Every company faces risks, including economic downturns, regulatory changes, technological disruption and currency fluctuations, especially for global companies. Investors can find these risks listed in the ‘Risk Factors’ section of a company’s annual report.
The Academy is intended to provide general information of an educational nature only. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Investing carries risk.
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