Ultimate Compounder Criterias - Edition 2, Analyzed By Deepseek
Ultimate Compounder Criterias - Edition 2, Analyzed By Deepseek
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Deepseek would explain the philosophy behind the Ultimate Compounder Criterias - Edition 2 Check
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Dear Deepseek,
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Ask :
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(1)
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My definition :
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Ultimate Capital (Asset) Light Business Model is defined if the Ultimate Productive Capital (Asset) Light Business Model Hierarchy Criteria is fulfilled.
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Ultimate Productive Capital (Asset) Light Business Model Hierarchy Criteria :
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Total Current Assets > Total Equity > Total Liabilities > Total Current Liabilities > Total Non-Current Assets > Total Non-Current Liabilities
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(2)
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My definition :
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Ultimate Hybrid of Profitabilities And Margins is defined if the Ultimate Hybrid of Profitabilities And Margins Hierarchy Criteria is fulfilled.
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Ultimate Hybrid of Profitabilities And Margins Hierarchy Criteria :
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ROIC > ROA > NPM > 2.5 × CICC
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(3)
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My definition :
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Ultimate Growth is defined if the Ultimate Growth Criteria is fulfilled.
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Ultimate Growth Criteria :
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Net Profit Growth ≥ Invested Capital Growth > 2.5 × CICC
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(4)
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My definition :
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Ultimate Compounder is defined if all the components in the Ultimate Compounder Criterias are fulfilled at the same time concurrently.
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Ultimate Compounder Criterias
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Ultimate Productive Capital (Asset) Light Business Model Hierarchy Criteria
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Ultimate Hybrid of Profitabilities And Margins Hierarchy Criteria
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Ultimate Growth Criteria
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:: Note 1 ::
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Clean Invested Capital Cost Factor
= { [ 1 + 10Y Government Bond Ratio ] × [ 1 + D/E × (1 + Commercial Loan Prime Ratio + Spread Ratio) ] ÷ [ 1 + D/E ] }
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CICC
= 100 × (Clean Invested Capital Cost Factor - 1)
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(1 + ROIC Growth Ratio)
= (1 + Net Profit Growth Ratio)÷(1 + Invested Capital Growth Ratio)
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ROIC (%) = 100 × Net Income ÷ (Total Equity + Total Interest Bearing Debts + Total Lease Liabilities)
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ROA (%) = 100 × Net Income ÷ Total Assets
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NPM = Net Profit Margin
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:: Note 2 ::
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Total Current Liabilities include Lower Short Term Lease Liabilities, Lower Short Term Interest Bearing Debts, Higher Short Term Contract Liabilities, and Other Current Liabilities.
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Total Non-Current Liabilities include Higher Long Term Lease Liabilities, Higher Long Term Interest Bearing Debts, Lower Long Term Contract Liabilities, and Other Non-Current Liabilities.
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Short Term Lease Liabilities are Lower than Long Term Lease Liabilities.
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Short Term Contract Liabilities are more than Long Term Contract Liabilities.
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Short Term Interest Bearing Debts are Lower than Long Term Interest Bearing Debts.
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Total Current Assets include Short Term Contract Assets, Zero Right of Use Assets, Very Low Inventory and Other Short Term Assets.
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Total Non-Current Assets include Zero Long Term Contract Assets, Right of Use Assets, Intangible Assets, Low PPE, Zero Inventory and Other Long Term Assets.
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All items are available (present) in the balance sheet.
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If the conditions are fully fulfilled, I deem that it is the result of the capital (assets) light business model and the capital productivity (in terms of revenue) being very high and operation efficient being very high.
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Please analyze, elaborate and comment as detailed and as much as possible but not until the message becomes too long and unable to be downloaded in a single image file.
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Please don't mention any stock names.
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Thanks.
