Revealing connections

To start our investigation for shares with huge upside potential, we have to check the connections between individual ratios quantified a year ago and the total return of the next year. For the sake of this chapter, we picked the following ratios. We took the values from 1 year earlier so that we can contrast these with last year's TRS:

  • Cash/assets 1 year ago
  • Net fixed assets/total number of assets 1 year ago
  • Assets/1000 employees 1 year ago
  • Price/cash flow average of last 5 years 1 year ago
  • Price/cash flow 1 year ago
  • Operating income/net sales 1 year ago
  • Dividend payout ratio 1 year ago
  • Asset turnover 1 year ago
  • P/BV 1 year ago
  • Operating income/net sales 1 year ago
  • Revenue growth in the last 1 year 1 year ago
  • Long-term debt/capital ...

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