AUDIT OF FINANCIALS FOR JUNE YEAR END HOLDINGS (most)
STOCK AUDIT 2025 –QUALITY INDICATORS The audit covers all the June year-end companies, mainly Australian, but also MSFT, some 44.5% of the portfolio, so a decent proportion. The third column is an attempt to weight the results for the stock position in the portfolio. I plan to cover the December and September companies in a similar fashion, after they report. 1. Gross Margin level and stability The aim is to have a high and stable GM. A high and stable GM may be indicative of positive unit economics and the ability to control the interplay between cogs and price. Ten of the 18 companies report a GM, so the sample is limited. The overall results indicate a quality portfolio. The outliers are BRG with a low GM of 35%, but with very low vol, indicating good control, but in a competitive industry with many pass-through costs, well below the average. Highish volatility is evident in NCK, IEL and JIN. JIN is a surprise, possibly due to ch...