The fifth class is coming to an end. Let's look back and learn from it. What's more, there are partners and teachers to help.
1,100/10: namely, the cash flow ratio, cash flow adequacy ratio and cash reinvestment ratio must be greater than 100%, 100% and10.
2. Ratio of cash to total assets: 10%~25%. If it is a money-burning industry, it must be >; 25%。
3. Average redemption days: If the first two indicators are not good enough, it depends on this. < 15 days is regarded as a cash company.
1, total assets turnover rate: whether >; 1; If not, it depends on whether the cash on hand is more than 25% of the average cash days.
2. Inventory turnover days: compare with the same industry to judge whether the product sells well.
3. Average cash collection days: After 90 days, it is necessary to continue to analyze whether it is an industry factor or the company just takes too long to pay back the money.
Among the above three points, "total assets turnover rate" accounts for 50%, and the other two items each account for 25%.
1, gross profit margin, operating profit margin and earnings per share (EPS)
There is no specific index requirement, so it is necessary to pay attention to the five-year trend of individual stocks and the horizontal comparison of industries. The higher the principle, the better!
It should be noted that the gross profit margin is a relatively stable indicator. If there is a mutation, there must be a major change. Therefore, when we look at the gross profit margin, we should look at it for five years, not just one year, but the trend from the gross profit margin figures.
2. Operating expense ratio
"Operating expense rate" connects "gross profit rate" and "operating profit rate", and a company's relative position in the industry can be judged according to the following indicators:
(1) Operating expense ratio
(2) Operating expense ratio
(3) The operating expense ratio is more than 20%, which may appear in the following industries.
A, own brand, advertising costs are very expensive.
B, the company has no economic scale, because the denominator (operating income) is small, so the index is high.
C, the market is booming, but it still needs continuous investment.
D, industries that need continuous promotion to have repeat customers, such as supermarkets.
E, catering industry. The expense ratio of the catering industry is generally above 33%, so the gross profit margin of the catering industry must be above 50% in order to continue to operate.
3. Marginal rate of operational safety
The margin of operational safety is more than 60%, and the company has sufficient profit margin. Even in the face of sudden market fluctuations, it will have higher resistance than other competitors.
4. Net interest rate
At least > 2% companies are worth investing in. Of course, the higher the net interest rate, the better!
5. Shareholders' returns
A company's return on equity can reach 10%, but if:
( 1)ROE & gt； 20% companies are very good companies.
(2) ROE-LT7% may not be worth investing.
1, asset-liability ratio-that stick
(1) companies with sound management are generally
(2) Bankrupt companies in the market are generally >: 80%, and the position is very low!
2, the ratio of long-term funds to real estate and equipment-long-term.
The index of "the longer the branch, the better" should be >: 100%, that is, long-term funds are greater than long-term assets.
1, current ratio: the bigger the index, the better! The average company ≥200% is not bad, but Mr. MJ, in his experience, this indicator is better than 300%, and it has been like this for three years!
2. quick ratio: The bigger the index, the better! According to Mr. MJ's experience, the quick-acting ratio in recent three years should be ≥ 150%.
If the above indicators are not met, the following cross-validation is required:
1, if 200%
(1) Cash: Do you have enough cash on hand? The more the better!
(2) Average days of cash payment: Can cash be recovered quickly? Also pay attention to comparing with peers.
(3) Days in stock: Pay attention to whether the company's products are best-selling, best-selling or slow-selling? !
of course
2, if the quick ratio
(1) Cash: The more, the better. The more, the stronger its ability to repay debts quickly.
(2) Average cash days: if the company receives cash every day, it is "average cash days".
(3) Turnover rate of total assets: If it is an industry that burns money, there is not enough cash on hand and the ability to repay debts quickly is also very weak. Such a company is also very dangerous and can't invest!
(1) Long-term and stable profitability: This is the concept of "moat" that he often mentions, and it is also the focus of our study.
(2) Free cash flow: cash is king!
(3) Return on Shareholders (ROE): > 20% is great! & lt7% do not vote!
(1) Did any company make money in a period of time? What should this sentence mean?
profit statement
(2) Where should a company really make money?
The cash flow of operating activities in the cash flow statement is combined with the profit rate in the income statement. First look at the profit rate and then look at the ocf to confirm that the profit is not virtual.
(3) This company has been making money, will it definitely not go bankrupt?
Not necessarily, in the case of slow payment and quick payment, the business ability is very good, and it will fall down because there is no money in hand.
(4) With so many financial reports and so many subjects, which one should I read first?
First of all, cash is king, first look at the cash in the balance sheet and the cash flow generated by operating activities. Then pay attention to profitability, profit rate in the income statement. Then look at the total asset turnover rate and return on equity.
(5) Which report is based on the actual situation, which is the least affected by human operation?
cash flow statements
(6) Which number does Buffett value most?
Free cash flow is equal to the cash flow generated by operating activities-basic capital expenditure.
(7) The money earned by the company is called "net profit", which is the most direct performance evaluation. Why is it easy to distort?
There is the subject of accounts receivable, so the income statement is estimated.
(8) If the company's operation goes downhill, how can we confirm whether there is capital to support it for a period of time?
First of all, is there enough cash, more than 25%?
Second, collect quickly and pay slowly;
Third, the complete cycle of doing business is short, that is, the example is high;
Fourth, the cash flow from operating activities is greater than 0.
(1) Which three parts should we focus on when the market is in a downturn?
I guess: cash flow, financial structure, profitability
(2) Which three parts should we pay attention to when the market performance is mediocre?
I guess: cash flow, operational capacity, financial structure
(3) Which three parts should we focus on when the market is good?
I guess: cash flow, profitability, operational ability
(4) When black swans are flying all over the sky in the market, which three parts should we focus on?
I guess: cash flow, financial structure, operational capacity
(5) What are the three components of a company that may go bankrupt?
I guess: cash flow, solvency, financial structure
I didn't answer all the questions correctly, wall!