Financial Statement Rules of Thumb:
💰 INCOME STATEMENT:
1: Gross Margin
🧮 Equation: Gross Profit / Revenue
👍 Rule: 40% or higher
🤔 Buffett's Logic: Signals the company isn’t competing on price.
2: SG&A Margin
🧮 Equation: SG&A Expense / Gross Profit
👍 Rule: 30% or lower
🤔......read more
