Tag Archives | profitability

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It’s unlikely Uber has a long-term future

Uber is the largest loss-making startup in history, and while investors will climb aboard the IPO and return money to early investors, the stockmarket will eventually realise there is no identifiable path to Uber profitability.

Profit downgrade? Blame it on the rain

Profit downgrade? Blame it on the rain

Exogenous factors like macro changes and weather can affect a company’s short-term profits. Management often blames uncontrollable factors for earnings downgrades but rarely owns up to a fortuitous tailwind.

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What is happening with LIC dividends?

LICs can sustain their dividends not only from current year profits, but from reserves built up in prior years. This report looks at reserve levels as a sign of consistency of future dividends.

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Goldilocks economy is keeping bears at bay

A ‘Goldilocks economy’ is one which runs neither too hot nor too cold. A combination of steady global growth, benign inflation and easy monetary conditions is carrying share markets to higher levels.

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Behind the headline profit numbers

There’s more to a company’s profitability than the headline dollar figure. Measures such as return on equity, return on assets and profit margin can provide a much better and balanced perspective.

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What to look for in a profitable turnaround

Turnarounds are not easy. As Warren Buffett said: “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact.”

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The value of wealth management for Australian banks

The wealth management businesses of major banks may be efficient uses of their capital, but it comes with scrutiny of the vertical integration model and culture risks. There’s increasing focus on whether it’s worth having.

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Judging big profits beyond the big headlines

The major banks and other large companies attract a lot of attention when they report profits of billions of dollars, but other measures of profitability show the big headline figures can be misleading.

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