Placing Harvest One Cannabis Inc. (TSXV:HVT) shares under the microscope we note that the firm has a current Return on Equity of -0.161932. Simply put, this ratio determines how well the firm uses investment funds to generate profit. This ratio is often considered “the mother of all ratios” as it often reveals how well a company is operating.
Most investors are aware that not all stocks will be performing well at the same time. Different stocks may have alternate reactions to various economic factors, world events, and business happenings. When one stock is up, another one might be on the way down. Keeping the portfolio full of names from different sectors can help offset imbalances when one stock or sector may be performing poorly while another stock or sector is doing well. Diversification is typically recommended with all types of investing. Many factors may come into play when trying to pick the right stocks to own. Investors may want to figure out how much they are willing to risk, and what kinds of returns they are looking for. Many beginner investors may not be comfortable picking stocks on their own. Seeking professional advice may be one avenue to pursue, but it is usually a good idea to know exactly what holdings are in the portfolio at all times, as markets can move quickly and without notice.
In addition to ROE, investors might also take into consideration some other ratios. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Harvest One Cannabis Inc. (TSXV:HVT) is -0.407824. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their