Diamonds woh, every one also like them - but only a rare few who can finally owned them - beware, a lot of people will come & con yours @ 715 & 720 hahaha
DuPont Analysis on MMode Does MMode’s business has economic moat? The return of equity of MMode is a good number of 19.83%, higher than the minimum requirement of 15% for most ardent fundamental investors. A DuPont analysis of MMode is carried out to dissect its ROE.
ROE = NI/E = NI/S * S/TA * TA/E Where NI is net income, E is equity, S is sales/revenue, TA is total assets NI/S is the net profit, S/TA is the asset turnover, TA/E is financial leverage
Net Income Margin = Net Income/ Revenue =11,766.3/73572.3= 15.99% Asset Turnover = Revenue/ Total Asset =73572.3/69,351.2=1.06 Financial Leverage = Total Asset/ Total Equity =69,351.2/59,212.7=1.17
The main driver of MMode’s high ROE is hence the high net profit of 15.99% most desirable way to achieve a higher ROE. The asset turnover of 1.06 (<1.5) and the financial leverage of 1.17 (<1.5) are relatively low. Hence there is plenty of room for MMode to improve its ROE such as improving its marketing and scouting for more business, or increases its leverage and hence its ROE
MMode’s ROE for the past 5 years average at 20% . Also note that this was achieved with very little debt. MMode is definitely a gems to look into.
Diamonds, Gems or Germs ??? hahaha - wow - very confuse because pocketed to much $$$... hahaha. Today my other Diamond also keep shining... very busy going & laughing to the bank... hahaha
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
TradeInvestStocks
1,042 posts
Posted by TradeInvestStocks > 2014-08-13 18:06 | Report Abuse
Today I had more Diamond @ 715 & 720 - jit bai lah - tua tua huat lor... hahaha