Profit margins....

cdlaine wrote:
That's OK...

Thor’s stock is currently trading at a P/E multiple of 15.82 against the industry average multiple of 4.76 says StockCall. Other financials are also healthy indicators of the company’s growth potential including a gross profit margin of 12.58 and net profit margin of 4.20 percent against the industry average of 26.82 percent and 41.69 percent respectively whilst Thor’s Return on equity of 15.32 percent surpassed the industry average return of 2.19 percent.

Thank you ....guess it was answerable.... I have a brother
with an MBA from Stanford... they really do talk like the
blurb quoted. And he does it with twinkle in his eye !
Good stuff , thanks again. Appears a few players in the
marketplace must be doing much better then the industry
average. Hopefully, a good sign.

BTW... I don't even have a clue what "Googled the Q" entails. Ha !

Charles

Even with those figures, you really can't tell how well the company is performing. Are they spending enough on research and development to continue into the next decade? If not, they are overstating their earnings. Do they have interest rate exposure (i.e loans the come due that currently have a below market interest rate) so that when the loans renew, interest expense will escalate. Is maintance of buildings and equipment current or are there deferred expenses coming? Are they facing potential labor cost increases? Are pensions adequately funded? Do they have the ability to raise prices should cost of materials rise or will that squeeze margins? Profit statements are but a snapshot, and like photos, can be manipulated to show things differently than they really are.