Are you an investor or sucker?

DCAL=Directed Combinatorial Algorithmic Library has been able to investigate using filters to determine if your investment is sound vs. industry averages.

Current Ratio (initial liquidity) = Total Current Assets/ Total Current Liabilities

Industry Average Ratios:
Agriculture 1.31
Mining 1.19
Construction 1.44
Manufacturing
Leather/Textile/App 1.50
Chem. Petrol. Metal 1.54
Wood Related Prod 1.43
Mach-trans equipment 1.54
Trans-Communic 1.03
Wholesale
Non-Durable 1.53
Durable 1.42
Retail
Hardware 1.68
Gen. Merchandise 2.14
Automobiles 1.23
Apparel 1.90
Furniture 1.61
Restaurants 0.73
Financial Services 1.18
Business Services 1.36
Service Industry 1.29

Additional crucial questions that enter into DCAL:
Earnings before interest & taxes (EBIT)
Working capital
Retained Earnings

There are also methologies employed to measure the management and if they value shareholder return or their own positions. -This is crucial to consider.

Remember that giving out $$ is easy but making $$ as a viable business requires accuracy and precision to match demand with supply of the right customers. And if your retained earnings require too much capital expenditures -this is not a positive.

Interesting video:


Sophisticated Explanations of Henry Paulson:


NYT Article on Henry Paulson & Congress