Your target company may be harvesting profits currently, but it may lack long term potential. Such ratios can be misleading. Information about the sales operation is seldom discussed in financial reports of public companies. Fortunately, this information is easily obtained using Scuttlebutt. Of all aspects of a company's activity, the most well-known to sources outside the company will be the sales organization.
Sales are of value only when they lead to profits.
You want to find out what the target company is doing to maintain or improve profit margins. Scuttlebutt can give you a glimpse into a company's profit future. Senior management is often blind to its own reputation, but others will see it clearly. A small company can do extremely well under an able autocrat. It is not difficult to churn out reams of accounting information.