Recent News and Analysis
- ViaSat, Inc. - New Contracts Result In Fiscal Fourth-Quarter Gain; Stock Advances
- Autodesk, Inc. - Shares Slip On Sluggish First-Quarter Results And Tempered Guidance
- Aruba Networks - Disappointing Fiscal Third-Quarter Results Send Shares Sliding
- Dell Inc. - Stock Barely Moves Despite Poor April-Quarter Results
- Eagle Bulk Shipping - Settlement Lifts First-Quarter Results; Stock Trades Higher
- Wal-Mart Stores - April-Period Results Disappoint; Shares Dip
- Cisco Systems - Stock Surges On Solid April-Period Report
- Computer Sciences - Mixed Fourth-Quarter Results Draw The Ire Of The Investment Community; Stock Declines
This article touches on the importance of having an understanding of balance sheet considerations when investing, particularly during tougher economic times. We describe Value Line’s Financial Strength ratings system, and list the main factors that determine individual categories. We also note some of the different capital structures among industries.
The Trucking Industry is a cyclical sector comprised of companies that provide shipping services, using tractor-trailers, to customers, which are usually commercial businesses. Most trucking outfits own and operate the vehicles in their fleets, though some do rely on leasing. The vast majority of revenue is generated domestically, since overseas shipments require either air- or sea-based transportation. Thus, these companies have little exposure to foreign currency fluctuations. The industry tends to be a leading indicator for the overall economy. During the early stages of an economic upswing, customers begin to ship more goods in anticipation of stronger business conditions. Conversely, a decrease in trucking demand may signal the beginning of an economic slump.