Slater and Gordon invest? - Still dodgy

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.

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