" .. s/d see their BV growing every year or at least most of the years during that 10 year period."
Yes, and as we have often discussed in the past, if the company issues no new shares in the period, then BV (Book Value) can only increase via the insertion of the Bottom Line, Net Income, into the Balance Sheet's Retained Income, after any dividend payment.
Therefore I've always asserted how important it is to interrogate the Income Statement in order to determine how much of the Top Line Revenue has made it to the Bottom Line, and how much of that Top Line Revenue has been lost to Debt Expense, CoS, SG&A, Tax, etc, etc....
Would you regard Coca Cola, Johnson & Johnson, Mastercard, etc, as cyclical businesses ? |
