What Do These Ratios Tell Us About Centrica?

LONDON — Before I decide whether to buy a company’s shares, I always like to look at two core financial ratios — return on equity and net gearing. These two ratios provide an indication of how successful a company is at generating profits using shareholders’ funds and debt, and they have a strong influence on dividend payments and […]

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3 Things to Love About Lloyds Banking Group

LONDON — There are things to love and loathe about most companies. Today, I’m going to tell you about three things to love about Lloyds Banking Group  (LSE: LLOY  ) (NYSE: LYG  ) . I’ll also be asking whether these positive factors make the biggest of Britain’s bailed-out banks a good investment today. Return to profitabilityLloyds has made a […]

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Don’t Get Too Worked Up Over Genesee & Wyoming’s Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company’s economic output. That’s because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls. Earnings’ unreliability is one of the reasons Foolish investors often […]

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