Profitability analysis is used to measure the company’s ability to manage its revenues effectively and provide stunning returns to its investors. This analysis helps to detect a profitable company over a loss-making one. The most successful way to identify a company’s profitability is by using ratio analysis. There are four important profitability ratios, namely gross income ratio, operating income ratio, pre-tax profit margin and net income ratio. Here, we have selected the most transparent and commonly used profitability ratio — net income ratio. Net Income Ratio Net income ratio gives us the exact profit level of a company. It reflec...
“Canadian homebuilding activity remains robust, with the best population growth in 25 years proving fundamental support. And, after declining modestly in Q2, residential investment looks to have added to growth again in Q3.” (BMO EconoFacts, October 10, 2017) Canadian housing starts fell in September after eight straight monthly gains. Nonetheless, the housing construction sector remains quite strong and the data suggest that residential construction will boost economic growth in the third quarter. Canadian housing starts slipped to 217,100 annualized units in September from 225,900 units in the previous month. In the month of September, ...
After a few months of coming close, the yield curve has finally met the flattest point since before the last recession. The difference between the 10 year and the 2-year bond yield is 76 basis points which is tied with the summer of 2016 for the lowest difference this cycle. Meeting the low could be a technical signal that sends the yield curve closer to an inversion. As of now, it doesn’t mean much. The chart below comparing the Dow to the yield curve shouldn’t cause investors any concern because recessions usually occur after the yield curve is inverted. Monday was another great day for stocks as all major indexes rallied. The Dow was t...
Today’s MPC member testimony in front of UK Parliament cast a particularly dovish tenor in the pound as UK monetary authorities clearly appeared reluctant to hike rates despite inflation data at five-year highs. The BoE officials are concerned that the slowdown in the Uk economy could turn into a recession if monetary conditions are tightened prematurely. Tomorrow’s UK wage data will go a long way towards deciding which way the BoE will lean. Wage growth has been the principal concern of the more dovish MPC members, as real wages are now showing a -0.9% contraction. Tomorrow wages are expected to maintain the 2.1% pace of the month prior....
This market, as much as it has consistently moved higher by 2 points here, and 3 points there, has managed to put traders and investors alike, to sleep. Traders these days, conveniently turn on their computer and expect the market to be either 1-2 points higher or 1-2 points lower. If it is the latter, the assumption is always that the dip will get bought up within the first hour of trading. Simply put, risk has fallen by the wayside. It’s a total snooze-fest out there! But that is exactly what will put traders in danger, because when they don’t take risk serious, is the precise time when downside risk tends to rear its ugly ...
from the St Louis Fed — this post authored by William Emmons, Lead Economist, Center for Household Financial Stability Household income went up in 2016, and relatively fewer families were in poverty or were without health insurance, according to a Census Bureau report. And senior citizens benefited most of all. According to the Census Bureau’s annual report on income, poverty and health insurance, inflation-adjusted U.S. median household income increased strongly in 2016 for the second straight year, reaching a new peak of $59,039.1 Also, the share of families in poverty and without health insurance declined. The report’s findings ...
How Many Hours Americans Need to Work to Afford a Home When it comes to the cost of living in cities, a general rule of thumb is that housing prices are much higher in the country’s economic and population hubs, especially in the cities along the coasts. Particularly in recent years, prices have been pushed sky-high in places like New York City or San Francisco through a combination of limited supply of new homes, increasing demand, shifting demographics, and government regulations. PUTTING IT INTO PERSPECTIVE Today’s visualization from HowMuch.net applies a common denominator to compare 97 of the biggest cities in the United States. Us...
Shares of Boeing (BA) are in focus in morning trading after rival Airbus (EADSY) announced plans to buy a majority stake in Bombardier’s (BDRBF) C Series jet program. Boeing called the agreement, which comes amid a decision by the Commerce Department to hit Bombardier with tariffs that would quadruple the price of the C-Series aircraft, a “questionable deal between two heavily state-subsidized competitors.” AIRBUS, BOMBARDIER DEAL: Airbus has agreed to buy a majority stake in Bombardier’s C Series program. Under the terms of the agreement, Airbus will buy 50.1% of the C Series Aircraft Limited Partnership, which manufa...
TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. As a long term investor, you need to own every piece of the investment puzzle to be fully diversified. And while investors tilt their asset allocations more towards safer, large cap stocks, there is the need for small cap stocks as well. And part of the small cap stock sector is micro cap stocks. Typically, micro cap stocks are publicly traded companies with a market capitalization of $50 million to $300 million. In many cases, pink sheet or penny stocks qualify as micro cap stocks. Here I will...
TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. In the battered and beaten solar sector, one company is still standing and getting ready to reinvent itself for what could be a very interesting sunrise. Ascent Solar Technology Inc. (ASTI), is going to be the company to put solar in places where solar is not usually found. They are looking to be more adaptive and flexible with what they call “niche solar” and with their new cutting-edge CIGS (Copper, Indium, Gallium, Selenide) photovoltaic technology on flexible, plastic substrate is set to ...