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He was a super quick five step way to analyze any companies quarterly results. Step one, revenue. Start with total revenue. That’s the company sales. If it’s grown compared to last year same quarter, the demand is strong. Step 2. Net profit. Check profit after tax. If profit has increased faster than revenue, the company is becoming more efficient. If it’s down, margins might be shrinking. Step 3, margins. Look at operating or net profit margin. Rising margins means better cost control. Step 4, expenses. If costs like raw materials or interest went up, higher expenses can reduce profits even if sales growth. Step 5 Management Outlook Finally, read about what the management says about the next quarter demand, inflation or new launches because markets react more towards coming than what has happened. In short, higher revenue, higher profit, stable margins and a positive outlook are signs of a good quarter. So the next time when results drop, analyze them like a pro with this five step analysis and follow your securities. For more such financial insight. Investment in securities markets are subject to market risks. Read all related documents carefully before investing.