Among olther indicators, investors can look at the PER (Price Earnings Ratio). It measures the relationship between the price of a company's shares and its profits after taxes. This accounting criterion is applied to all companies traded on the stock market, so it is a key figure for measuring a company's health.

One of the most reliable indicators of a company's health has always been its net profits, if there are any. In fact, dividends paid to share holders come from these profits. Still, it is a good idea to pay attention to the source of the profits and, if necessary, ignore the role of special revenues. For example, earning 500 million euros through sale of assets is not the same as taking in that money through the company's day-to-day performance. This is important in the business world. The rule is that operating revenue should exceed operating costs.

How revenue evolves is also an excellent barometer. Thus, anything that raises revenue through sales of products or services is good news for the company.

For companies linked to new technologies, experts look at how much mone they earmark for research and development. If this percentage of the company's budget tends to drop, analysts might suspect there is something wrong with the firm.

Tracing a stock's performance on the stock market also provides valuable information for investors. If the share price is close to the yearly high, the company is in good shape. On a company's balance sheet you should check outstanding bills and inventory. From one year to the next these should not rise more than sales do. This gives an idea of the company's solvency. All companies whose shares are traded on the stock market must undergo audits, and these hard-to-read reports are full of clues to a company's health. Analysts look for tips the auditor may have made to the company. They also look at provisions made by the company for such things as pension plans, tax debts, bad investments, lawsuits, changes in accounting methods or dubious transactions.

Publicly traded companies have to tell the Spanish stock market regulatory board, or Comisi�n Nacional del Mercado de Valores (CNMV) about its strategies, novelties, news or events that can affect its share price, either directly or indirectly. In this way share holders can monitor the actions of the companies they invest in so as to justify their decisions.�

Finally, cash flow� is another key barometer as to a company's health. It is the figure that is used to calculate dividends paid out to share holders or to attend to creditors.