12 Tech Stocks With Strong Sources of Profitability and Good Cash Coverage

By Kapitall:There is always more to a company’s story than its bottom line. Although the bottom line, or net income, is the headline number analysts watch and journalists report, companies can earn these profits in different ways – some more preferred than others. This is why it is always a good idea to study the source of a company's profits. One way to analyze sources of profitability is with DuPont analysis of return on equity (ROE) profitability.

By Kapitall:A company’s profitability can come from more than one source, and some are preferred over others. This is why an analysis beyond the top and bottom-line numbers is important when choosing stocks. One way to analyze sources of profitability is with DuPont analysis of return on equity (ROE) profitability.

By Kapitall:There is always more to a company’s story than its bottom line. Although the bottom line, or net income, is the headline number that analysts watch and journalists report, companies can earn these profits in different ways – some more preferred than others. This is why it is always a good idea to study the sources of profits for a company. One way to analyze sources of profitability is with DuPont analysis of return on equity (ROE) profitability.

By Kapitall:There is always more to a company’s story than its bottom line. Although the bottom line, or net income, is the headline number that analysts watch and journalists report, companies can earn these profits in different ways – some more preferred than others. This is why it is always a good idea to study the sources of profits for a company. One way to analyze sources of profitability is with DuPont analysis of return on equity (ROE) profitability.

By Kapitall:Profitability is a very important consideration when choosing among dividend stocks. If you want to be able to rely on a company’s dividend, be sure that the company’s profits are also reliable. One way to analyze sources of profitability is with DuPont analysis of return on equity (ROE) profitability. ROE can be broken up into three components such that increases in ROE can be attributed to those components. ROE: = (Net Profit/Equity)

By Kapitall:There is always more to a company’s story than their bottom line. Although the bottom line, or net income, is the headline number that analysts watch and journalists report, companies can earn these profits in different ways – some more preferred than others. This is why it is always a good idea to study the source of profits for a company. One way to analyze sources of profitability is with DuPont analysis of return on equity profitability.

By Kapitall:There is always more to a company’s story than the bottom line. Although the bottom line, or net income, is the headline number that analysts watch and journalists report, companies can earn these profits in different ways - some more preferred than others. This is why it is always a good idea to study the source of profits for a company. One way to analyze sources of profitability is with the DuPont analysis of return on equity (ROE) profitability.

By Kapitall:One important consideration for tech stocks is how easily the companies can pay their ongoing capital expenditures. Operating cash flow is a likely source for this payment, so the ratio of operating cash flow to capital expenditures can give an idea of whether the firm’s fixed asset expenses are reasonably covered, leaving cash to spare.