Return on Invested Capital (ROIC)

A common mistake companies make in their business model is that they often underestimate the costs of funding the business until it becomes profitable.

Many analysts believe that companies that run on the best business models can run themselves.

• One way analys...

• Most important, can the company survive a raid by its creditors? How much cash does the company have? How much debt? What is the debt structure, and how long can it operate in the red while working out its problems without going bankrupt? 

• If it’s bankrupt already, then what’s left for ...

• Market value is influenced by the business cycle and can fluctuate over periods of time. Market values decrease during recessions (bear markets) and rise during economic expansions (bull markets).
• Market value also depends on the sector in which th...