Last week's profit announcement from Ossia International Limited (SGX:O08) was underwhelming for investors, despite headline numbers being robust. We think that the market might be paying attention to some underlying factors are concerning.
See our latest analysis for Ossia International
![earnings-and-revenue-history](https://newsfile.futunn.com/pic/0-21630049-0-d79757be82f78062b50eda9ace6c3e0b.png/big)
SGX:O08 Earnings and Revenue History November 21st 2022
Examining Cashflow Against Ossia International's Earnings
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
Ossia International has an accrual ratio of 0.21 for the year to September 2022. Unfortunately, that means its free cash flow fell significantly short of its reported profits. To wit, it produced free cash flow of S$359k during the period, falling well short of its reported profit of S$9.63m. Ossia International's free cash flow actually declined over the last year, but it may bounce back next year, since free cash flow is often more volatile than accounting profits.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Ossia International.
Our Take On Ossia International's Profit Performance
Ossia International's accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Therefore, it seems possible to us that Ossia International's true underlying earnings power is actually less than its statutory profit. But the good news is that its EPS growth over the last three years has been very impressive. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To that end, you should learn about the 4 warning signs we've spotted with Ossia International (including 2 which don't sit too well with us).
Today we've zoomed in on a single data point to better understand the nature of Ossia International's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
上週的盈利公告來自 奧西亞國際有限公司 儘管標題數字強勁,但SGX: O08)對投資者來說還是讓人不知所措。我們認爲,市場可能正在關注一些令人擔憂的潛在因素。
查看我們對 Ossia International 的最新分析
![earnings-and-revenue-history](https://newsfile.futunn.com/pic/0-21630049-0-d79757be82f78062b50eda9ace6c3e0b.png/big)
SGX: O08 收益和收入記錄 2022 年 11 月 21 日
根據Ossia International的收益研究現金流
用於衡量公司將其利潤轉換爲自由現金流(FCF)效果的一個關鍵財務比率是 應計比率。簡而言之,該比率從淨利潤中減去FCF,然後將該數字除以公司在此期間的平均運營資產。你可以將現金流的應計比率視爲 “非FCF利潤率”。
因此,負應計比率對公司來說是正數,而正應計比率是負數。雖然應計比率高於零並不令人擔憂,但我們確實認爲,當公司的應計比率相對較高時,值得注意。這是因爲一些學術研究表明,高應計率往往會導致利潤下降或利潤增長減弱。
截至2022年9月的一年中,Ossia International的應計比率爲0.21。不幸的是,這意味着其自由現金流大大低於其報告的利潤。也就是說,在此期間,它創造了35.9萬新元的自由現金流,遠低於其公佈的963萬新元的利潤。Ossia International的自由現金流實際上在去年有所下降,但明年可能會反彈,因爲自由現金流通常比會計利潤更具波動性。
注意: 我們總是建議投資者查看資產負債表的實力。點擊此處查看我們對Ossia International的資產負債表分析。
我們對 Ossia International 利潤表現的看法
Ossia International過去十二個月的應計比率表明現金轉換不太理想,就我們對其收益的看法而言,這是負數。因此,在我們看來,Ossia International的真正基礎收益能力實際上可能低於其法定利潤。但好消息是,其在過去三年中的每股收益增長非常令人印象深刻。本文的目標是評估我們在多大程度上可以依靠法定收益來反映公司的潛力,但還有很多需要考慮的地方。請記住,在分析股票時,值得注意的是所涉及的風險。爲此,你應該了解 4 個警告標誌 我們發現了 Ossia International(包括 2 個對我們來說不太合適)。
今天,我們放大了單個數據點,以更好地了解Ossia International的利潤性質。但是,還有很多其他方法可以讓你對公司的看法。有些人認爲,高股本回報率是高質量業務的好兆頭。雖然可能需要代表你進行一些研究,但你可能會發現這個 免費的 一系列擁有高股本回報率的公司,或者這份內部人士爲了有用而買入的股票清單。
對這篇文章有反饋嗎?擔心內容嗎? 取得聯繫 直接和我們在一起。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St 的這篇文章本質上是籠統的。 我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。