In this episode of the Investing For Beginners Podcast, Dave and Andrew dive into the often overlooked metric, the sales to capital ratio. They discuss why investors should care about this ratio, its relation to capital efficiency and growth, and how it can help determine a company’s potential. They also provide examples of companies with different sales to capital ratios and offer tips on using this tool effectively. Tune in to gain valuable insights into analyzing company growth and making informed investment decisions.
02:51 One company grows slowly, another grows rapidly.
06:35 Walmart sells items, Netflix creates and sells shows.
09:53 Use averages to mitigate abnormal sales fluctuations.
13:00 Fast growth early, then profit and stability.
16:39 Measure revenue growth based on company assets.
20:01 Biserve grows revenue, FIS plans spin-off.
23:45 Wrap up sales to capital ratio talk. Subscribe, review, visit envestingforbeginners.com.
For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com
Today’s show is sponsored by:
Sign up today at butcherbox.com/beginners and use code beginners to choose your free steak for a year and get $20 off.
This holiday season, give one annual membership and get one free at MASTERCLASS.COM/IFB.
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Stitcher | Tunein
You can find the transcript of today’s show below:
