Check the cash flow characteristics and sustainability in any company before investing, as various ratios can be an early sign that the business is churning through rather than generating cash.
Tag Archives | company results
Commodity price falls and China worries overhung the market at the start of 2016, and some miners posted terrible results. But February’s reporting season had some bright spots and room for optimism.
Reporting season is hard work for equity analysts, especially when a company’s results differ from the expected. It’s also a time for a company to outline its strategy and gauge the reaction of its owners, the fund managers.
It’s all too easy for companies to point the finger at external factors to explain poor performance, but when the same excuses are repeated year after year, it’s time to look within for the real cause.