The hosts start the risk-rating assessment of two companies, KinSail Capital and Chewy, by discussing their profitability and cashflow. They explore how different metrics can change the assessment and highlight Chewy's operating loss in the most recent quarter. The chapter also touches on the importance of branding, diversification, and having a diverse buyer base in assessing risk.
High risk? Low risk? MEDIUM risk? What does that even mean? And what the heck is risk anyway? Today, we define risk Foolishly and revisit our risk ratings, a system to quantify the long-term risk your companies may face.
Companies Discussed: KNSL, CHWY
Host: David Gardner Guests: Emily Flippen, Andy Cross Producer: Rick Engdahl