Start with revenue and profit over three years to see the direction. Then check total borrowings against net worth to understand debt load.
Finally, compare operating cash flow with reported profit. Persistent gaps deserve a closer look at the notes to accounts.
An easy example
A company can report a profit of Rs 64 crore while cash from operations is Rs 21 crore. The gap usually sits in receivables or inventory.
Important note
Consistency over three years matters more than any single strong year.
Common mistake
Looking only at revenue growth and ignoring borrowings and cash flow.