In the most recent session, shares of Pulse Seismic Inc (OTC:$PLSDF), (TSX-V:$PSD) have moved down -4.15%, or -$0.14. The company recently hit a price of $3.23 with a volume of 48,349.
The stock market is unpredictable. No amount of planning can account for every possible outcome. Sometimes hard decisions come up, and it’s up to the investor to prepare for these moments accordingly. Investors who plan ahead and learn from their mistakes are much more likely to succeed than someone who doesn’t.
With this in mind, let’s take a look at the three principle profitability ratios.
First, we can take a look at Return on Assets. The ROA is determined by taking net income and dividing it by the average total assets. Put simply, it reveals how well a company capitalizes on its assets to turn a profit. The higher the number, the better it reflects on the company. Pulse currently has a ROA of -14.41.
We can also look at the Return on Invested Capital. The ROIC is calculated by taking net income, minus dividends, and dividing it by total capital invested. The ROIC reflects how effective a company is at managing its invested capital to produce income. The high the number, the better it reflects on the company. Pulse currently has a ROIC of -17.83.
Finally, we can take a look at the Return on Equity. The ROE, like the ROIC, reflects how well a company generates profits on the investments received from shareholders. As with the other ratios, higher numbers reflect well, while lower numbers send up red flags. Pulse currently has a ROE of -17.83.
Some investors may feel overwhelmed by the great amount of information available to them. One of the most difficult aspects of picking the right stocks is knowing what information is important and what is not. The best way to achieve this level of expertise is to have a strict research regimen. Once an investor knows what to look for, a strong portfolio will fall into place.
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