How to find the good deeds that outlast 2008 market crash

Find the good deeds that are able to survive the collapse of the stock market is really tough. However, these simple financial ratios can help you discover these tough stocks.

Profit per employee


You can calculate the staff productivity by dividing the total income by the number of personnel. As different industries have different relationships, it is necessary to compare the personal ability 'to bring value to society in the same field. Compare yourself a bank with $ 12k profit for the staff with another bank of $ 98K profits for the staff, I bet you can see the difference.

Good employees keep the business environment, but workers will support the growth of big business. And in equity investment, earnings growth does not matter, especially during the recession. Even if people do not last time, but difficult to do.

Return on Assets


ROA can be calculated by dividing net income by the number of activities that the company owns. It indicates how efficient management is to transform the assets into profits. Compare with other stocks of how they do it is something you should consider. Lower ROA can be attributed to not having enough expertise to manage the assets or not having the right resources in the first place.

During the collapse of the stock market, companies with the lowest return on assets (ROA) are likely to be acquired by stronger companies. Unfortunately, not all stocks ROA who want to keep down the value in the eyes of big business. So, better avoid such actions.

Liquidity ratio


Liquidity ratio measures whether the stock is able to fulfill the obligations in the short term. Can be calculated as the current ratio or quick. In both cases, it is the good of the liquid on its current liabilities. This report is essential during the recession, as the interest rate will increase considerably the time. Even if the Federal Reserve maintains the rate of interest recently, there is no guarantee that will be the same in 2008.

Recently, I noticed some good companies holding large cash like never before. This indicates that stocks are preparing for any possibility of higher interest rates next year, or have enough money to buy a profitable business at a cheaper price in 2008 .......