ASX:DRX Income Statement Nov 30th 17
Additionally, we can examine Diatreme Resources’s loss by looking at what has been happening in the industry along with within the company. First, I want to quickly look into the line items. Revenue growth over last few years has been negative at -21.10%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Eyeballing growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a unexciting single-digit rate of 6.76% over the previous year, and a substantial 11.86% over the past five. This suggests that, even though Diatreme Resources is currently unprofitable, it may have benefited from industry tailwinds, moving earnings in the right direction.
What does this mean?
Diatreme Resources’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues Diatreme Resources may be facing and whether management guidance has steadily been met in the past. You should continue to research Diatreme Resources to get a better picture of the stock by looking at:
1. Financial Health: Is DRX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.