Been looking over the full year (unaudited) accounts of Slater and Gordon...Couple of issues.
Quality of earnings looks ordinary - Calculated the accruals ratio...its over 1! And the NPAT is almost twice Operating Cash Flow...two big red flags.
Then there is the ROA and ROE...both under 6% (ROA is at 2%)...
Debt has increased as well..Debt/Equity ratio is 0.55 now if you include non cancellable operating leases.
For a legal services company, these are not great metrics. Might pass still.
NOte: Not a recommendation to invest/not invest in Slater and Gordon.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment