Q: Might a company that rakes in a lot of money still be a bad investment?
- L.D., Worcester, Mass.
A: It's possible. Remember that the money a company takes in (its revenue, or sales) is its top line. Before you get to its bottom line of profits, you have to take out expenses, such as salaries, supplies and taxes. It's critical to know how much (if anything) the company keeps as profit, and whether important numbers, such as sales and profits, are increasing.