Some Investors May Be Worried About Train Alliance Sweden s (STO:TRAIN B) Returns On Capital
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May 28, 2021 Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. One common approach is to try and find a company with
returns on capital employed (ROCE) that are increasing, in conjunction with a growing
amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Although, when we looked at
Train Alliance Sweden (STO:TRAIN B), it didn t seem to tick all of these boxes.
Is Train Alliance Sweden (STO:TRAIN B) Using Too Much Debt?
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March 04, 2021 David Iben put it well when he said, Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital. It s only natural to consider a company s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly,
Train Alliance Sweden AB (publ) (STO:TRAIN B) does carry debt. But the more important question is: how much risk is that debt creating? Why Does Debt Bring Risk? Generally speaking, debt only becomes a real problem when a company can t easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses,
Does Train Alliance Sweden (STO:TRAIN B) Deserve A Spot On Your Watchlist?
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February 19, 2021 For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. And in their study titled
Who Falls Prey to the Wolf of Wall Street? Leuz et. al. found that it is quite common for investors to lose money by buying into pump and dump schemes. In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like