More matter with less art

“Buyer Beware: How to Identify Companies That Waste Shareholder Dollars”

That above is the title of this piece from the guys over at Visual Capitalist and as the work those guys do is generally pretty good I’m happy to put the link in front of the highly esteemed readers of IKN (and even the lowly ones) in order that more eyeballs make it over there.
What the VC numbercrunch does is to compare G&A expenses at juniors to total expenses, come up with a ratio and from there posit as to whether your junior is using its cash wisely, or is maybe, just maybe more interested in signing management salary cheques (oh, perish the thought). Although the ratio isn’t a perfect system it’s probably a good rule of thumb for screening purposes and the VC note also gives us specific examples of companies which, in their opinion, are saints and sinners when it comes to spending shareholder cash wisely. So here’s the link to the note again, go have fun.

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