Ultimate Compounder Criterias - Edition 3, Analyzed By Deepseek
Ultimate Compounder Criterias - Edition 3, Analyzed By Deepseek
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ATC’s Remark on Deepseek :
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Deepseek is exceptionally intelligent in the analysis of stock’s financial statements and ratios.
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By ATC (Absolute Total Compound)
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Deepseek would explain the philosophy behind the Ultimate Compounder Criterias - Edition 3 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 > Short Term Accounts Payable > Total Non-Current Assets > Short Term Accounts Receivable > 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 Hierarchy Criteria is fulfilled.
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Ultimate Growth Hierarchy 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 Hierarchy 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 the implication of the hierarchy of each criteria 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.
