The Growth Score Guide says that we should be looking for businesses with a Gross Profit to Assets ratio above 1. Does this mean above 100%? I have a portfolio of 15 stocks; they have GPA ratios ranging from 0 to 100%, some get close to 100%, but none above that. But thinking about it, isn't this ratio akeen to the interest rate on a bank account? For example, if I earn 2% on my bank account, its GPA would be 0.02? Would it not be quite hard to find a business that gives you more than 1 over just one year?
Customer support service by UserEcho