I am reading an old book titled "Security Analysis" by Benjamin Graham and I'm trying to understand his concept of profitability. How would I be able to calculate the capital funds? Would that just mean to add up all of the current assets, such as the money on hand, buildings and other current assets?
Also, he describes something called the "profit margin" which means that the final profit per dollar of sales yielding the final net profit available for capital funds. So does this mean that I calculate the profit minus the expenses and divide that into the sales?
Thank you in advance.
Also, he describes something called the "profit margin" which means that the final profit per dollar of sales yielding the final net profit available for capital funds. So does this mean that I calculate the profit minus the expenses and divide that into the sales?
Thank you in advance.
