Weighted Average Metrics for Income Statement and Balance Sheet by tangent1.57


I sampled 295 of the biggest companies on NASDAQ from all different sectors to determine their income statement's average margins. I wanted to discern the biggest expenses of a corporation, among other things.
When I amalgamated all the data, I determined that if a company has $1.00000 in revenue, then:
REVENUE________ 1.0000000 COGS_EXPENSE___ -0.59808681 GROSS_PROFIT___ 0.40191319 EBITDA_EXPENSE_ -0.829159855 EBITDA_________ 0.170840145 EBIT_EXPENSE___ -0.891954919 EBIT___________ 0.108045081 TOTAL_COSTS____ -0.929164721 ------------------------------------------------------- NET_PROFIT_____ 0.070835279
The average P/B, ROE, Profit Margin, P/E, ROA, and Leverage Ratio are: PE 30.22084178 PB 2.86305874 ROE 0.094737889 ROA 0.048573146 Leverage Ratio 1.950416982
Reply to
2.7182818284590...

I did the same analysis for the total for 455 companies on the NASDAQ, both international and domestic, in the high-tech sector.
I was very interested in seeing how the COGS differ from the general broader corporations. To my surprise the COGS expenses (as a % of revenue) is a lot more for the high-tech sector!
Moreover, broadly, this whole sector is VERY UNPROFITABLE for companies with less than $1B market capitalization. Moreover, they are very over-leveraged.
REVENUE________ 87,869,189,067 COGS_EXPENSE___ 58,912,260,873 GROSS_PROFIT___ 28,956,928,194 EBITDA_EXPENSE_ 86,402,611,061 EBITDA_________ 1,466,578,007 EBIT_EXPENSE___ 91,013,533,720 EBIT___________ -3,144,344,653 TOTAL_COSTS____ 92,124,331,469 NET_PROFIT_____ -4,255,142,402
REVENUE________ 1.0000 COGS_EXPENSE___ 0.6705 GROSS_PROFIT___ 0.3295 EBITDA_EXPENSE_ 0.9833 EBITDA_________ 0.0167 EBIT_EXPENSE___ 1.0358 EBIT___________ -0.0358 TOTAL_COSTS____ 1.0484 NET_PROFIT_____ -0.0484
PE -25.386 PB -45.852 ROE -39.105 ROA -0.081 Leverage Ratio -22.320
Reply to
2.7182818284590...

REVENUE________ 1.00000000 COGS_EXPENSE___ 0.73653587 GROSS_PROFIT___ 0.26346413 EBITDA_EXPENSE_ 0.96698689 EBITDA_________ 0.03301311 EBIT_EXPENSE___ 1.08160911 EBIT___________ -0.08160911 TOTAL_COSTS____ 1.10018924 NET_PROFIT_____ -0.10018924
Since these companies don't pay taxes, their total interest payments are only 1.84% of revenues. Therefore, a financially distressed company is mostly caused, not by high interest payments, but by very high fixed costs, such as COGS and S&M/Marketing/R&D.
Reply to
2.7182818284590...

They do actually, just not income taxes.
That utterly mangles the real story.
They mostly go broke because not enough are buying what they are selling.
You only get very high fixed costs when they arent selling much.
Reply to
Rod Speed

Thats very arguable with an operation like Apple or Seagate.
It isnt really true for comparable non high tech operations.
Thats very confused by the startups which arent yet profitable.
Thats the only real way to get started.
Reply to
Rod Speed

I agree with your opinion as well. Keep in mind, if the revenues increased, than the debt/revenues would DECREASE. It wouild be less than 1.84% of revenues.
Reply to
2.7182818284590...

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