In this episode of the Investing For Beginners Podcast, Dave and Andrew dive into the often overlooked metric, the sales to capital ratio. They discuss why investors should care about this ratio, its relation to capital efficiency and growth, and how it can help determine a company's potential. They also provide examples of companies with different sales to capital ratios and offer tips on using this tool effectively. Tune in to gain valuable insights into analyzing company growth and making informed investment decisions.
02:51 One company grows slowly, another grows rapidly.
06:35 Walmart sells items, Netflix creates and sells shows.
09:53 Use averages to mitigate abnormal sales fluctuations.
13:00 Fast growth early, then profit and stability.
16:39 Measure revenue growth based on company assets.
20:01 Biserve grows revenue, FIS plans spin-off.
23:45 Wrap up sales to capital ratio talk. Subscribe, review, visit envestingforbeginners.com.
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