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Profitability

1-12 out of 13 results.

Dispelling the disruption myth

We tend to call any change a 'disruption', but the vast majority of so-called disruptive technologies are variations on a theme. Many innovations are really high-risk, low-probability investments.

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

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.

Three reasons why current dividends matter

Dividend streams tend to be stable and determined by fundamental factors. Unlike capital valuations, which are affected by estimates of prospective returns which are, in turn, strongly affected by market sentiment.

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.

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.

What matters most? A good industry or a good management?

The surprising fact from this study of profitability is that there’s no such thing as a ‘bad’ industry, only inadequate or inappropriate management.

When a company is a money pit

Not all business use their capital in the most productive way, and investors need to recognise when companies are struggling to generate cash flows to pay off debts when due.

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.

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."

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.

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.

Most viewed in recent weeks

Unexpected results in our retirement income survey

Who knew? With some surprise results, the Government is on unexpected firm ground in asking people to draw on all their assets in retirement, although the comments show what feisty and informed readers we have.

Three all-time best tables for every adviser and investor

It's a remarkable statistic. In any year since 1875, if you had invested in the Australian stock index, turned away and come back eight years later, your average return would be 120% with no negative periods.

The looming excess of housing and why prices will fall

Never stand between Australian households and an uncapped government programme with $3 billion in ‘free money’ to build or renovate their homes. But excess supply is coming with an absence of net migration.

Five stocks that have worked well in our portfolios

Picking macro trends is difficult. What may seem logical and compelling one minute may completely change a few months later. There are better rewards from focussing on identifying the best companies at good prices.

10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?

Six COVID opportunist stocks prospering in adversity

Some high-quality companies have emerged even stronger since the onset of COVID and are well placed for outperformance. We call these the ‘COVID Opportunists’ as they are now dominating their specific sectors.

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