The Productivity Route to Small Capital Stock and Business Growth
How many of the following questions can you answer for your last stock trade? a. What has the Asset Turnover been over the past year? b. How about Net Profit per employee? c. How does the stock compare on such parameters compared to its competitors? d. Does the management have credible plans in place to improve efficiency ratios over the next 12 months? Congratulations if you are satisfied with your answers. An unusually long spell of unbroken world economic growth has diverted stock investor focus from productivity to gross revenue and net profit growths at virtually any costs. Things have…