Research shows that at present, coal mine businesses are struggling through the decline but still remain operational. Why?
First: Net profit margin remains positive, which is proof that the companies are getting better in managing their funds. The positive margin pushes the companies to keep operating because it will give out a positive result.
Second: Despite dropping, Return on Assets (ROA) is still positive; which means that companies are still able to fund their operations through loans. Nevertheless, the shareholder wealth has decreased in recent years.
Third: The operation obtains the positive operational cash flow which signifies that the companies are able to pay and save their funds.
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