Q12023: The 20 Most Profitable Companies in the World

MillionaireTiger
2023-04-04
Reward Tiger-CoinsReward 1000 Tiger-coins

The survival and development of a company are based on profitability as the primary condition. There are two important indicators to understand profitability.

The first is gross margin.

Gross margin is a direct reflection of the relationship between a company's selling price and its cost of sales, and does not take into account other factors that may affect profitability, so this indicator is a more intuitive reflection of the competitiveness of the company's products.

The second one is EBITDA.

EBIT is used to measure the profitability of a company's main business, while EBITDA is used to measure the ability of a company to generate cash flow from its main business. More and more investors are focusing on EBIT and EBITDA instead of net income because it is simply a measure of net income, while EBITDA is more reflective of a company's profitability because it includes income taxes, interest, and depreciation and amortization expenses.

Due to the product attributes of the different industries, the most profitable industries in terms of EBITDA alone are energy and real estate. Therefore, here are the 20 most profitable companies over 10B according to GICS.

Consumer Discretionary

$MGM Resorts International(MGM)$ $McDonald's(MCD)$ $Booking Holdings(BKNG)$ $Yum(YUM)$ $Caesars Entertainment(CZR)$

Communication Services

$Charter(CHTR)$ $T-Mobile US(TMUS)$ $Verizon(VZ)$ $Sirius XM(SIRI)$ $Alphabet(GOOGL)$

Information Technology

$VeriSign(VRSN)$ $Broadcom(AVGO)$ $GEN DIGITAL INC(GEN)$ $ASML Holding NV(ASML)$ $Analog Devices(ADI)$

As an investor, what are the most important metrics you look for in a company's financial condition?

what metrics do you look at when evaluating how profitable a company is?

How do you determine whether a company is profitable or has the potential to be profitable?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Reward expired
Due to insufficient number of valid participants, 1000Tiger coins have been refunded to the initiator
Deadline to 05/16 11:43
Reward-post

Comments

  • SR050321
    2023-04-04
    SR050321

    $Caesars Entertainment(CZR)$ the pnl negative as show in $Tiger Brokers(TIGR)$ apps, so why is it the most profitable in the world 😱 how i see the company is profitable? i check tiger apps and also compare peer to peer. The apps also provide trendline and foreard PE, is all generated by AI ? 😱 

  • Kaixiang
    2023-04-04
    Kaixiang
    Choosing fundamentally strong companies is imperative to ensure long-term success of one’s investment journey. Some of the metrics that I look at include:
    1. Revenue - consistent revenue growth across the last 5-10 years
    2. Net income - must be profitable and exhibit continual growth in profits
    3. Operating Cash Flow - must generate positive cash flow in order to re-invest for growth and share buybacks or distribution of dividends
    4. Debt to Equity Ratio - Low ratio on balance sheet indicates less dependency on debt which can be risky in a high interest or recessionary environment.
    There are several ways to evaluate profitablity, which includes:
    1. Gross Margin - determined based on revenue less Cost of Goods Sold (COGS). This is an indicator of how well a company can price its products or services / economic moat
    2. Net Margin - determined based on revenue less COGS and taxes. This shows the level of financial management and health of profits.
    Happy to hear your approach! [Grin]
  • Shyon
    2023-04-05
    Shyon
    I am not very pro but i usually look into the basic criteria which can be a good reference for beginner.

    1. Revenue growth
    2. Gross margin changes
    3. Net profit growth
    4. EPS

    And oftenly it's good to refer to the company prospect or incoming forecast / estimation to foresee the growth.

  • SirBahamut
    2023-04-04
    SirBahamut
    Normally i will see the GPM, OPM, ROE, FCF yield and revenue growth to determined the PE multiple I am willing to pay per EPS. For balance sheet, i will see the net debt and leverage ratio, and maybe the cash conversion cycle. Nowadays for semi i pay attention to days of inventory as well, since inventory becomes so bloated
    • lindsay877
      it is a little hard for me to fully understand next move of market according to index
    • WinfredBill
      very resonable choices depending on specific scene
  • 0QH
    2023-04-04
    0QH
    I am more of a swing trader. but will still look at EPS and P/E
    • WinifredAnn
      it is enough to know about general situation i think
    • WernerBilly
      Good strategy. Very useful indicators for swing trading
  • Ericdao
    2023-04-05
    Ericdao
    Too many data to look at. Trading should not be too complicated else its will be extremely confusing.
    • WinfredBill
      theoretical forecate is necessary, but other complexity is nonsense
    • FrankCollins
      it is most annoyed fact is not many data, but many fake, hype and unrealistic data in it
Leave a comment
276
6574