Companies with a durable competitive advantage pay the highest dividends in the long term. Here is how you can assess competitive position and a cheat sheet to streamline it.
The Buffett-Munger Profitability_And_Assets_Productivity_Investing Truism Dharma 162:
FPR (FINANCE PRESSURE RATIO, by ATC) & its Criteria
Vs
Academic CAPITAL INTENSITY RATIO (CIR)
1.
Fundamental Concept:
Financial System is designed to keep debtors broke.
Capital light or heavy business models are not of any concern intrinsically.
The concern is the FINANCE PRESSURE which stems from PROFITABILITY, Not from the CAPITAL.
We shall rather look at the FINANCE angle than the CAPITAL angle.
2.
HEAVY FINANCE PRESSURE requires HEAVY & HEAVIER REFINANCING as time goes on, Debts built up.
LIGHT FINANCE PRESSURE requires LIGHT & LIGHTER REFINANCING as time goes on, Debts paid off.
3.
Saying so,
HEAVY CAPITAL with BIG Profitability
= LIGHT FINANCE PRESSURE intrinsically
HEAVY CAPITAL with SMALL Profitability
= HEAVY FINANCE PRESSURE intrinsically
LIGHT CAPITAL with BIG Profitability
LIGHT CAPITAL with SMALL Profitability
4.
Formulas:
i.
= Inverse of Assets Turnover Ratio
= Total Assets ÷ Revenue
ii.
ATC's FINANCE PRESSURE RATIO ( ATC's FPR, enhanced version )
= Total Assets ÷ ∛(Revenue × Gross Profit × Net Profit)
Or
ATC's COMPETITIVE RETURN ON ASSET RATIO ( ATC's CompROA, enhanced version )
= ∛(Revenue × Gross Profit × Net Profit) ÷ Total Assets
= 1 ÷ FPR
iii.
If FPR ≥ 4.743 or CompROA ≤ 0.2109, it implies Weak Competitive Advantage with High Finance Pressure & Weak Profitability
iv.
If FPR ≤ 2.371 or CompROA ≥ 0.4217, it implies Strong Competitive Advantage with Low Finance Pressure & Strong Profitability
=> poised to be a Multi-bagger, the magnitude depends on the synergy between the ROIC & Gnp
=> having a long compounding runway time horizon
v.
References: measured on 16 APR 2025
vi.
Greatec FPR
= 1,112,267÷∛(752,373×236,025×154,996)
= 3.6838772673
Qes FPR
= 313,894÷∛(269,577×68,092×17,317)
= 4.5993785263
Vstecs FPR
= 872,153÷∛(2,901,716×172,309×70,566)
= 2.6591319615
SNS FPR
= 560,406÷∛(1,018,513×104,841×30,303)
= 3.7888579572
5.
Natgate FPR
= 3,727,047÷∛(5,270,753×248,014×160,190)
= 6.27629645
6.
Atech FPR
= 669,506,151÷∛(604,166,542×82,949,379×61,016,085)
= 4.6126431276
7.
ITMAX FPR
= 508,867÷∛(220,232×134,991×80,394)
= 3.8059930964
8.
ADB FPR
= 75,916÷∛(60,448×43,185×19,584)
= 2.045476826
9.
Focusp FPR
= 288,338÷∛(292,528×186,583×33,189)
= 2.3653240894
10.
Padini FPR
= 1,890÷∛(1,950×686.33×142.66)
= 3.2822515816
11.
CTOS FPR
= (778,569+94,744)÷∛(304,850×221,085×106,271)
= 4.5305386898
12.
MRDIY FPR
= 3,801,950÷∛(4,651,416×2,132,646×568,937)
= 2.1354218884
13.
99Smart FPR
= 3,561,150÷∛(9,981,642×1,104,332×490,265)
= 2.0292992193
14.
Cnergen FPR
= 198,581÷∛(128,796×21,666×11,436)
= 6.2606478046
15.
MPI FPR
= 3,020÷∛(2,110×225.53×185.89)
= 6.7778612702
16.
Opensys FPR
= 127,106÷∛(92,749×35,122×11,916)
= 3.7539895741
17.
YTLPOWR FPR
= 66.84÷∛(22.86×5.74×3.01)
= 9.1099970542
18.
Frontken FPR
= 988.54÷∛(569.21×177.69×136.81)
= 4.1175902796
19.
PIE FPR
= 858,343÷∛(975,445×82,005×53,133)
= 5.2989731283
20.
Wellcal FPR
= 174.68÷∛(205.63×86.13×46.53)
= 1.8631673204
21.
CDB FPR
= 36.08÷∛(12.66×4.72×1.38)
= 8.2892441596
22.
TM FPR
= 21.16÷∛(11.71×2.26×2.02)
= 5.6170733548
23.
MAHSING FPR
= 7,553,263÷∛(2,520,300×628,505×240,747)
= 10.415832486
24.
KITACON FPR
= 664,494÷∛(937,398×120,471×51,899)
= 3.6855520976
25.
BNASTRA FPR
= 730,958÷∛(946,596×134,138×90,255)
= 3.242125606
26.
INTA FPR
= 623,221÷∛(690,779×68,645×33,182)
= 5.3582776532
27.
Suncon FPR
= 3,600÷∛(3,520×222.11×186.91)
= 6.8347305286
28.
Gamuda FPR
= 28,100÷∛(15,250×835.82×932.53)
= 12.3128290065
29.
IJM FPR
= 20,630÷∛(6,220×1,590×579.95)
= 11.5249718701
30.
TAMBUN FPR
= 883,513÷∛(219,943×85,579×49,524)
= 9.0444449937
31.
VLB FPR
= 725,179÷∛(626,093×78,091×38,502)
= 5.8731466496
32.
KERJAYA FPR
= 1,951,005÷∛(1,835,469×245,719×160,145)
= 4.6848100865
33.
KPPROP FPR
= 1,100÷∛(193.66×90.77×40.47)
= 12.3221794547
34.
LBS FPR
= 4,344,121÷∛(1,434,659×482,566×240,157)
= 7.9001443722
35.
MGB FPR
= 1,123,172÷∛(1,031,970×172,217×60,111)
= 5.0997308204
36.
KENERGY FPR
= 116.11÷∛(122.50×36.15×19.95)
= 2.6069969812
37.
F&N FPR
= 5.79÷∛(5.30×1.69×0.54105)
= 3.4214634517
38.
MI FPR
= 1,180÷∛(463.45×93.47×68.07)
= 8.2288355027
39.
PTRANS FPR
= 1,655,362÷∛(186,746×107,043×70,991)
= 14.7306538178
40.
SCGBHD FPR
= 721,169÷∛(1,347,016×135,242×72,318)
= 3.0534686679
41.
MFCB FPR
= 5,122,226÷∛(1,741,879×656,781×459,178)
= 6.3482232438
42.
PEKAT FPR
= 418,690÷∛(291,095×84,320×22,766)
= 5.0832550009
43.
Sunview FPR
= 431.22÷∛(253.99×42.05×9.86)
= 9.1315755695
44.
SLVEST FPR
= 783.46÷∛(408.86×122.20×39.14)
= 6.2650990915
45.
SAMAIDEN FPR
= 282.53÷∛(261.68×37.60×18.01)
= 5.0300681968
46.
PWRWELL FPR
= 182.76÷∛(111.69×44.43×17.99)
= 4.0892207908
47.
CHB FPR
= 147.06÷∛(277.76×48.30×19.36)
= 2.3049092593
48.
HEGROUP FPR
= 111,172÷∛(206,910×31,442×13,687)
= 2.4895954503
49.
CBHB FPR
= (159,566+83,440)÷∛(271,692×73,424×41,749)
= 2.5828350657
50.
Inari FPR
= 3.430÷∛(1.42×0.29891×0.2425)
= 7.3189246511
51.
SKPRES FPR
= 1,550÷∛(2,050×261.68×110.80)
= 3.9717049728
52.
MCEHLDG FPR
= 231.89÷∛(150.04×33.94×20.97)
= 4.887756695
53.
PECCA FPR
= 247.66÷∛(233.07×99.64×58.53)
= 2.2357487445
54.
HLIND FPR
= 3,050÷∛(3,370×822.95×467.74)
= 2.79660128
55.
Mcement FPR
= 10,840÷∛(4,460×1,650×535.54)
= 6.8626583172
56.
HSSEB FPR
= 418,661÷∛(201,479×70,308×25,170)
= 5.9041392391
57.
Agmo FPR
= 57.94÷∛(36.41×14.33×6.54)
= 3.8485483908
58.
Lgms FPR
= 106.37÷∛(43.63×18.46×12.34)
= 4.9473784853
59.
Infom FPR
= 293,931÷∛(201,764×62,420×32,298)
= 3.9670197953
60.
Cloudpt FPR
= 159,880÷∛(145,001×37,699×20,326)
= 3.3256501195
61.
Smrt FPR
= 101.15÷∛(68.64×41.46×27.23)
= 2.3725451313
62.
Infotec FPR
= 92,917÷∛(101,326×47,298×17,457)
= 2.1244707215
USA ::
VeriSign FPR
= 1.41÷∛(1.56×1.37×0.78570)
= 1.1862743492
TATA CONSULTANT SERVICES ( INDIA) FPR
= 1,600÷∛(2,550×766.14×485.53)
= 1.6284153478
Karooooo Ltd FPR
= 264.99÷∛(241.83×166.36×48.04)
= 2.1273655546
INFOSYS LIMITED FPR
= 16.29÷∛(19.12×5.79×3.31)
= 2.27644032
Google FPR
= 450.26÷∛(349.81×203.81×100.12)
= 2.3384989732
Meta FPR
= 276.05÷∛(164.50×134.37×62.36)
= 2.480445235
Amazon FPR
= 624.89÷∛(637.96×311.7×59.25)
= 2.7461907881
Microsoft FPR
= 533.90÷∛(261.80×181.72×92.75)
= 3.255101171
F5 FPR
= 5.90÷∛(2.89×2.29×0.59484)
= 3.7365791113
Arista Networks FPR
= 14.04÷∛(7×4.49×2.85)
= 3.1378874396
Check Point FPR
= 5.80÷∛(2.57×2.21×0.8457)
= 3.4375372873
Qualys FPR
= 986.82÷∛(608.72×497.26×173.68)
= 2.6342337343
Fortinet FPR
= 9.76÷∛(5.96×4.80×1.75)
= 2.6481422015
ADOBE FPR
= 29.95÷∛(22.04×19.48×6.75)
= 2.1006904199
NVIDIA FPR
= 111.60÷∛(130.50×97.86×72.88)
= 1.1430261483
TSMC FPR
= 204.12÷∛(90.03×49.27×36.48)
= 3.7457950577
AMD FPR
= 69.23÷∛(25.79×11.28×1.64)
= 8.8598472621
Broadcom FPR
= 165.36÷∛(54.53×32.49×10.07)
= 6.3283754501
Lam Research FPR
= 19.84÷∛(16.21×7.74×4.29)
= 2.4390156028
The Buffett-Munger Profitability_And_Assets_Productivity_Investing Truism Dharma 162:
FPR (FINANCE PRESSURE RATIO, by ATC) & its Criteria
Vs
Academic CAPITAL INTENSITY RATIO (CIR)
1.
Fundamental Concept:
Financial System is designed to keep debtors broke.
Capital light or heavy business models are not of any concern intrinsically.
The concern is the FINANCE PRESSURE which stems from PROFITABILITY, Not from the CAPITAL.
We shall rather look at the FINANCE angle than the CAPITAL angle.
2.
HEAVY FINANCE PRESSURE requires HEAVY & HEAVIER REFINANCING as time goes on, Debts built up.
LIGHT FINANCE PRESSURE requires LIGHT & LIGHTER REFINANCING as time goes on, Debts paid off.
3.
Saying so,
HEAVY CAPITAL with BIG Profitability
= LIGHT FINANCE PRESSURE intrinsically
HEAVY CAPITAL with SMALL Profitability
= HEAVY FINANCE PRESSURE intrinsically
LIGHT CAPITAL with BIG Profitability
= LIGHT FINANCE PRESSURE intrinsically
LIGHT CAPITAL with SMALL Profitability
= HEAVY FINANCE PRESSURE intrinsically
4.
Formulas:
i.
Academic CAPITAL INTENSITY RATIO (CIR)
= Inverse of Assets Turnover Ratio
= Total Assets ÷ Revenue
ii.
ATC's FINANCE PRESSURE RATIO ( ATC's FPR, enhanced version )
= Total Assets ÷ ∛(Revenue × Gross Profit × Net Profit)
Or
ATC's COMPETITIVE RETURN ON ASSET RATIO ( ATC's CompROA, enhanced version )
= ∛(Revenue × Gross Profit × Net Profit) ÷ Total Assets
= 1 ÷ FPR
iii.
If FPR ≥ 4.743 or CompROA ≤ 0.2109, it implies Weak Competitive Advantage with High Finance Pressure & Weak Profitability
iv.
If FPR ≤ 2.371 or CompROA ≥ 0.4217, it implies Strong Competitive Advantage with Low Finance Pressure & Strong Profitability
=> poised to be a Multi-bagger, the magnitude depends on the synergy between the ROIC & Gnp
=> having a long compounding runway time horizon
v.
References: measured on 16 APR 2025
vi.
1.
Greatec FPR
= 1,112,267÷∛(752,373×236,025×154,996)
= 3.6838772673
2.
Qes FPR
= 313,894÷∛(269,577×68,092×17,317)
= 4.5993785263
3.
Vstecs FPR
= 872,153÷∛(2,901,716×172,309×70,566)
= 2.6591319615
4.
SNS FPR
= 560,406÷∛(1,018,513×104,841×30,303)
= 3.7888579572
5.
Natgate FPR
= 3,727,047÷∛(5,270,753×248,014×160,190)
= 6.27629645
6.
Atech FPR
= 669,506,151÷∛(604,166,542×82,949,379×61,016,085)
= 4.6126431276
7.
ITMAX FPR
= 508,867÷∛(220,232×134,991×80,394)
= 3.8059930964
8.
ADB FPR
= 75,916÷∛(60,448×43,185×19,584)
= 2.045476826
9.
Focusp FPR
= 288,338÷∛(292,528×186,583×33,189)
= 2.3653240894
10.
Padini FPR
= 1,890÷∛(1,950×686.33×142.66)
= 3.2822515816
11.
CTOS FPR
= (778,569+94,744)÷∛(304,850×221,085×106,271)
= 4.5305386898
12.
MRDIY FPR
= 3,801,950÷∛(4,651,416×2,132,646×568,937)
= 2.1354218884
13.
99Smart FPR
= 3,561,150÷∛(9,981,642×1,104,332×490,265)
= 2.0292992193
14.
Cnergen FPR
= 198,581÷∛(128,796×21,666×11,436)
= 6.2606478046
15.
MPI FPR
= 3,020÷∛(2,110×225.53×185.89)
= 6.7778612702
16.
Opensys FPR
= 127,106÷∛(92,749×35,122×11,916)
= 3.7539895741
17.
YTLPOWR FPR
= 66.84÷∛(22.86×5.74×3.01)
= 9.1099970542
18.
Frontken FPR
= 988.54÷∛(569.21×177.69×136.81)
= 4.1175902796
19.
PIE FPR
= 858,343÷∛(975,445×82,005×53,133)
= 5.2989731283
20.
Wellcal FPR
= 174.68÷∛(205.63×86.13×46.53)
= 1.8631673204
21.
CDB FPR
= 36.08÷∛(12.66×4.72×1.38)
= 8.2892441596
22.
TM FPR
= 21.16÷∛(11.71×2.26×2.02)
= 5.6170733548
23.
MAHSING FPR
= 7,553,263÷∛(2,520,300×628,505×240,747)
= 10.415832486
24.
KITACON FPR
= 664,494÷∛(937,398×120,471×51,899)
= 3.6855520976
25.
BNASTRA FPR
= 730,958÷∛(946,596×134,138×90,255)
= 3.242125606
26.
INTA FPR
= 623,221÷∛(690,779×68,645×33,182)
= 5.3582776532
27.
Suncon FPR
= 3,600÷∛(3,520×222.11×186.91)
= 6.8347305286
28.
Gamuda FPR
= 28,100÷∛(15,250×835.82×932.53)
= 12.3128290065
29.
IJM FPR
= 20,630÷∛(6,220×1,590×579.95)
= 11.5249718701
30.
TAMBUN FPR
= 883,513÷∛(219,943×85,579×49,524)
= 9.0444449937
31.
VLB FPR
= 725,179÷∛(626,093×78,091×38,502)
= 5.8731466496
32.
KERJAYA FPR
= 1,951,005÷∛(1,835,469×245,719×160,145)
= 4.6848100865
33.
KPPROP FPR
= 1,100÷∛(193.66×90.77×40.47)
= 12.3221794547
34.
LBS FPR
= 4,344,121÷∛(1,434,659×482,566×240,157)
= 7.9001443722
35.
MGB FPR
= 1,123,172÷∛(1,031,970×172,217×60,111)
= 5.0997308204
36.
KENERGY FPR
= 116.11÷∛(122.50×36.15×19.95)
= 2.6069969812
37.
F&N FPR
= 5.79÷∛(5.30×1.69×0.54105)
= 3.4214634517
38.
MI FPR
= 1,180÷∛(463.45×93.47×68.07)
= 8.2288355027
39.
PTRANS FPR
= 1,655,362÷∛(186,746×107,043×70,991)
= 14.7306538178
40.
SCGBHD FPR
= 721,169÷∛(1,347,016×135,242×72,318)
= 3.0534686679
41.
MFCB FPR
= 5,122,226÷∛(1,741,879×656,781×459,178)
= 6.3482232438
42.
PEKAT FPR
= 418,690÷∛(291,095×84,320×22,766)
= 5.0832550009
43.
Sunview FPR
= 431.22÷∛(253.99×42.05×9.86)
= 9.1315755695
44.
SLVEST FPR
= 783.46÷∛(408.86×122.20×39.14)
= 6.2650990915
45.
SAMAIDEN FPR
= 282.53÷∛(261.68×37.60×18.01)
= 5.0300681968
46.
PWRWELL FPR
= 182.76÷∛(111.69×44.43×17.99)
= 4.0892207908
47.
CHB FPR
= 147.06÷∛(277.76×48.30×19.36)
= 2.3049092593
48.
HEGROUP FPR
= 111,172÷∛(206,910×31,442×13,687)
= 2.4895954503
49.
CBHB FPR
= (159,566+83,440)÷∛(271,692×73,424×41,749)
= 2.5828350657
50.
Inari FPR
= 3.430÷∛(1.42×0.29891×0.2425)
= 7.3189246511
51.
SKPRES FPR
= 1,550÷∛(2,050×261.68×110.80)
= 3.9717049728
52.
MCEHLDG FPR
= 231.89÷∛(150.04×33.94×20.97)
= 4.887756695
53.
PECCA FPR
= 247.66÷∛(233.07×99.64×58.53)
= 2.2357487445
54.
HLIND FPR
= 3,050÷∛(3,370×822.95×467.74)
= 2.79660128
55.
Mcement FPR
= 10,840÷∛(4,460×1,650×535.54)
= 6.8626583172
56.
HSSEB FPR
= 418,661÷∛(201,479×70,308×25,170)
= 5.9041392391
57.
Agmo FPR
= 57.94÷∛(36.41×14.33×6.54)
= 3.8485483908
58.
Lgms FPR
= 106.37÷∛(43.63×18.46×12.34)
= 4.9473784853
59.
Infom FPR
= 293,931÷∛(201,764×62,420×32,298)
= 3.9670197953
60.
Cloudpt FPR
= 159,880÷∛(145,001×37,699×20,326)
= 3.3256501195
61.
Smrt FPR
= 101.15÷∛(68.64×41.46×27.23)
= 2.3725451313
62.
Infotec FPR
= 92,917÷∛(101,326×47,298×17,457)
= 2.1244707215
USA ::
1.
VeriSign FPR
= 1.41÷∛(1.56×1.37×0.78570)
= 1.1862743492
2.
TATA CONSULTANT SERVICES ( INDIA) FPR
= 1,600÷∛(2,550×766.14×485.53)
= 1.6284153478
3.
Karooooo Ltd FPR
= 264.99÷∛(241.83×166.36×48.04)
= 2.1273655546
4.
INFOSYS LIMITED FPR
= 16.29÷∛(19.12×5.79×3.31)
= 2.27644032
5.
Google FPR
= 450.26÷∛(349.81×203.81×100.12)
= 2.3384989732
6.
Meta FPR
= 276.05÷∛(164.50×134.37×62.36)
= 2.480445235
7.
Amazon FPR
= 624.89÷∛(637.96×311.7×59.25)
= 2.7461907881
8.
Microsoft FPR
= 533.90÷∛(261.80×181.72×92.75)
= 3.255101171
9.
F5 FPR
= 5.90÷∛(2.89×2.29×0.59484)
= 3.7365791113
10.
Arista Networks FPR
= 14.04÷∛(7×4.49×2.85)
= 3.1378874396
11.
Check Point FPR
= 5.80÷∛(2.57×2.21×0.8457)
= 3.4375372873
12.
Qualys FPR
= 986.82÷∛(608.72×497.26×173.68)
= 2.6342337343
13.
Fortinet FPR
= 9.76÷∛(5.96×4.80×1.75)
= 2.6481422015
14.
ADOBE FPR
= 29.95÷∛(22.04×19.48×6.75)
= 2.1006904199
15.
NVIDIA FPR
= 111.60÷∛(130.50×97.86×72.88)
= 1.1430261483
16.
TSMC FPR
= 204.12÷∛(90.03×49.27×36.48)
= 3.7457950577
17.
AMD FPR
= 69.23÷∛(25.79×11.28×1.64)
= 8.8598472621
18.
Broadcom FPR
= 165.36÷∛(54.53×32.49×10.07)
= 6.3283754501
19.
Lam Research FPR
= 19.84÷∛(16.21×7.74×4.29)
= 2.4390156028