The accounting research firm, GMT Research

Lisa Mangkornkarn

The accounting research firm

GMT Research

GMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Armed with this information, we help investment professionals navigate the financial landscape.

Thematic (Sector/Industry)

India Consumer discretionary / Thematic (Sector/Industry)

Sometimes stock markets don’t bounce back. They just hit the bottom and then crawl sideways for years. Take Greece, its stock market is still 87% below its 2007 peak. Over 20 years later and Thailand’s is still below its 1994 peak! The problem in both instances was that a major part of the economy was over-leveraged and needed to down-pay debt. This necessitated slower economic growth. In Asia back in 1997, as it is in Greece today, an over-leveraged corporate sector was a major contributing factor. And yet scant attention is paid to this part of the economy…but that’s where we come in handy.Whilst we might be best known for our accounting reports on the likes of <a href="http://www.smartkarma.com/insights/noble-group-what-new-disclosure" target="_blank">Noble Group </a>and <a href="http://www.smartkarma.com/insights/airasia-just-answer-the-questions" target="_blank">AirAsia</a>, we also conduct detailed analysis of the listed corporate sector with a focus on capex, free cash flows and leverage. This enables us to tell whether the corporate sector is in a position to support an investment up-cycle or whether a prolonged down-cycle is likely. We gather data from over 32,000 listed non-financials across 43 markets over a 20 year horizon.

Sometimes stock markets don’t bounce back. They just hit the bottom and then crawl sideways for years. Take Greece, its stock market is still 87% below its 2007 peak. Over 20 years later and Thailand’s is still below its 1994 peak! The problem in both instances was that a major part of the economy was over-leveraged and needed to down-pay debt. This necessitated slower economic growth. In Asia back in 1997, as it is in Greece today, an over-leveraged corporate sector was a major contributing factor. And yet scant attention is paid to this part of the economy…but that’s where we come in handy.Whilst we might be best known for our accounting reports on the likes of Noble Group and AirAsia, we also conduct detailed analysis of the listed corporate sector with a focus on capex, free cash flows and leverage. This enables us to tell whether the corporate sector is in a position to support an investment up-cycle or whether a prolonged down-cycle is likely. We gather data from over 32,000 listed non-financials across 43 markets over a 20 year horizon.

CORPORATE LEVERAGE: An Inconvenient Truth