During volatile economic times, companies with strong financials and a history of success are those that should be invested in. One such company is Japan Tobacco. Founded in 1985, Japan Tobacco is one of the largest tobacco companies in the world…
NEW YORK, NY, September 29, 2022 /24-7PressRelease/ — During volatile economic times, companies with strong financials and a history of success are those that should be invested in. One such company is Japan Tobacco. Founded in 1985, Japan Tobacco is one of the largest tobacco companies in the world. Isaac Toussie, an accomplished tobacco industry investor, points to the company’s high dividend policy and low debt levels as strong benchmarks for the company’s ongoing success.
A vital statistic in analyzing whether a company is a satisfactory investment is whether the company has a stable dividend. Dividends are direct cash flows to investors that the company pays out on a semiannual basis. Usually, companies that are well-established and earn profits issue dividends, since those are the only companies that can afford to pay stockholders a portion of the earnings that they receive. Japan Tobacco has a dividend policy that generally ranges between 6-7% annually, a high dividend percentage. (Yahoo Finance). With such a high percentage given each year, investors are able to compound their investment or withdraw funds. A high dividend yield offers investors safety.
Another financial statistic that carries weight when deciding whether to invest in a company is the amount of debt a company has in relation to its equity and assets. Japan Tobacco has a very high amount of income, with an EBITDA of 738.11 billion as of 06/30/2022. (Yahoo Finance). A high EBITDA shows that the company at hand has the ability to pay debt using their earnings. Japan Tobacco’s high earnings allow it to pay back debt quickly. Furthermore, Japan Tobacco is managed effectively, which is clear from their solid return on assets ratio of 5.6%. Isaac Toussie points to the combination of effective management of assets with a strong EBITDA as indicators that Japan Tobacco is a strong investment.
Overall, Japan Tobacco has strong financial numbers that indicates a successful company that will maintain future success.
This article is presented for informational purposes only and should not be relied upon as financial or other advice.
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