This 1 Metric Shows Why You Should Be Cautious With Tilray Brands Stock

While it's often narratives rather than numbers that cause stocks to swing in value, sometimes the most parsimonious way to summarize a company's strengths and weaknesses is to focus on a key quantitative metric or two. Numbers never tell the whole story, but they can often give investors some pretty solid hints about what's coming next.One figure in particular is especially important to consider for investors who either hold or who are considering buying Tilray Brands (NASDAQ: TLRY) stock right now. Even if you're not usually one for appreciating the numbers behind a stock, it's worth paying attention to this one, so let's dive in.Companies that can reliably make investments that generate higher returns than the costs associated with financing and making those investments tend to be better stocks to buy than companies that consistently make money-losing investments. That makes sense, because investors won't be incentivized to contribute their capital by buying shares of the stock if they can see that the business previously did not get a good return on its capital. Nor will lenders be apt to offer loans at favorable interest rates if they see that prior loans were difficult to repay.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool