$LAW
Market Cap:
$359.5 Million
$LAW Insights BETA
Expenses
- Gross Profit Margin is relatively consistent.
- Avg. Gross Profit Margin is ≈72.51%, which is fantastically high. There is a good chance this business has strong competitive advantages. Be sure to make sure SGA, R&D, & Interest expenses are not eating up all the gross profits.
Cost Of Revenues
Gross Profit
Gross Profit Margin
- SGA is relatively inconsistent, which can mean they face intense competition.
- Avg. SGA is ≈101.26%, which is extremely high. The company can be massively under-prepared for a situation where sales drops quickly. They might not be able to reduce SGA costs quickly enough and/or reducing SGA costs quickly might have knock-on effects to revenue.
- R&D as % of Gross Profit is 55.96% on average, which is high. There is an inherent risk that the technological advantage the company enjoys will be obsolete at some point in the future.
Selling, General & Admin Expense
Research & Development
Depreciation, Depletion & Amortization
SGA Expense to Gross Profit Ratio
R&D To Gross Profit Ratio
DDA To Gross Profit Ratio
Operating Expenses Total
Operating Profits/Loss
Income/Loss
- Net Income is negative on average. Companies with competitive advantages typically make money.
Pretax Income
Income Tax
Net Profits/Loss
Pretax Income YoY Change
Income Tax Rate
No data
No data
Net Profits/Loss YoY Change
Basic EPS
Net Income To Revenue Ratio
Assets & Liabilities
- Company's without competitive advantage have an ever increasing amount of PPE, which is going also be accompanied by increasing Depreciation expenses. This is a bad because it eats into the profits of the company and indicates that the company likely needs to continuously reinvent their products. This could indicate they are facing fierce competition and a lack of a competitive advantage. It’s particularly worse if the increases in PPE investments are done using debt, rather than internal sources so check debt growth.
- Goodwill is relatively inconsistent. Increasing Goodwill indicates that the company is out buying other companies at prices above their book value. This can be a good thing if it’s buying companies that have competitive advantages or it can be ignorable/bad if the acquired companies did not have competitive advantages.
Cash & Short-Term Investments
Cash & Equivalents
Cash To Operating Expenses Ratio
Inventory
No data
No data
Receivables
Total Short-Term Assets
Property, Plant And Equipment
Long-Term Investments
No data
No data
Total Long-Term Assets
Total Assets
Net Income To Total Assets Percentage
Accounts Payable
Short-Term Debt
Long Term Debt Due
Total Short-Term Liabilities
Long-Term Debt
Other Long-Term Liabilities
Total Long-Term Liabilities
Total Liabilities
Short-Term To Long-Term Debt Ratio
Short-Term Assets To Debt Ratio
Long-Term Debt To Net Income Ratio
No data
No data
Ownership
- Return on Shareholders' Equity has been -5.69%, which is low (<10%). If Net Income as percentage of Total Revenue also weak (<10%) or negative, it’s a red flag. If it's strong (>10%), it's a green flag since this indicates that they are returning the earnings to shareholders somehow.