Tom Spencer
OCTOBER 13, 2023
A higher ratio of fee income implies less traditional credit risk and less balance sheet usage (therefore higher ROE) but also implies greater market risk related to securities portfolios and potentially higher revenue volatility related to volatility in capital markets. Valuation Metrics Price-to-earnings (P/E) Price-to-book (P/B) 2.1
Markovitz Consulting
MAY 19, 2021
Often people will point out that many of these companies have run into trouble since he wrote the book. An industrial machinery maker is the kind of company where you would expect to see old-school, bottom line-driven thinking driving organizational decisions. Yet nothing could be further from the truth.
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Rick Conlow
SEPTEMBER 24, 2019
Products, the balance sheet and customers are the priority. Consequently, they lag others in their industry in quality or customer service. If so, check out Rick’s Superstar Leadership book. . As a result, business executives are rated in the bottom one third. Unfortunately, employees are often an afterthought.
Harvard Business
FEBRUARY 26, 2018
In contrast, industrial giant GE’s stock price has declined by 44 % over the last year, as news emerged about its first losses in last 50 years. Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm? Let’s first look at the balance sheet.
Tom Spencer
NOVEMBER 9, 2019
If the bank does its job well, it can achieve an acceptable loss ratio that makes the aggregate loan book profitable despite some individual loans not being repaid. Banks have huge balance sheets well in excess of their equity value due to all deposits being liabilities – the balance sheet is the business.
Martinka Consulting
MAY 4, 2018
I recently had discussions with a client who would like to sell to one of his three competitors (given his industry, these are the only logical buyers). One of the first things I do when I see financial statements is check if the year-to-date income on the P&L is the same as the year-to-date income on the balance sheet.
Tom Spencer
APRIL 17, 2014
This is not necessarily a problem if the decline was expected because a business is sustained from cashflow, not profit, and long term growth can be pursued through capital appreciation, which shows up on the balance sheet and not on the profit and loss statement. Industry vertical. Product line. Distribution channel.
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