"If you were to select 10 key ratios for TME what would you...

"If you were to select 10 key ratios for TME what would you select?"

@andy777,

Almost more than anything, the dynamics around organic capital generation is very important to me.

So, I'd include metrics that measure conversion of accounting earnings to cash flows, and how much capital the business needs to consume on an ongoing basis, i.e., determinants of Free Cash Flow.

Therefore, at a very minimum, I'd include:

- Cash Flow Conversion (adjusted for working capital changes)
- Capex/Depreciation

If the diagnostics needed to be constrained to just 10, then, from your list above, I'd remove Capex/Sales and ROCE. And even FCF/EBITDA probably tells us everything that FCF/Revenue does, and more, so I'd eliminate FCF/Revenue

Also, EBITDA margin is a bit redundant, so I would replace it with Gross Profit Margin