Finding The Edge
In the Fiscal Year 2020, Nvidia’s “AI business” resumed its astronomic growth, revenue from the data-center segment spiked more than double (124%) from the previous period (from ~3B to 6.6 B). In our Nvidia earning analysis, we try to understand what behind that impressive leap.
Continue reading “Nvidia Earning Analysis: From Chip to System”
Regarding its rising number of subscribers, Disney said that its streaming business does very well, even better than the most optimistic estimation. In this analysis of the Disney Income Statement, we try to neutralize that euphoria.
Continue reading “Analysis of Disney Income Statement: Inside the Magic”
Adobe stuns us with an 86% gross profit margin – exceeding even Apple, Amazon, Microsoft, and Google. Yet, in a contrast, its operating margin only at a 29% level. In 2019, The creator of Illustrator generates a 9.5 B gross profit margin but only 3.27 B converted as operating margin. The largest cost of software maker is not its software making or research. What does it mean for shareholders? We try to track this financial ratio layer by layer, from revenue to earning, from production to marketing strategy.
Continue reading “Financial Ratio Analysis: What Adobe Gross Profit Margin Tell Investor?”
Charlie Munger has one single – simple, financial ratio for stock market analysis “It’s obvious that if a company generates high returns on capital (ROIC) and reinvests at high returns, it will do well. But this wouldn’t sell books..”. In this article we will discuss: