When analysing a stock, most of us only look at Group level figures. The Group level consists of the parent company and its other subsidiaries. This is opposed to the Company level figures which only represent the parent company. Are the company level figures important?
I do not yet have a conclusive answer, but these are some of my thoughts.
First and foremost, why is the state of the parent company even a possible consideration? After all, shareholders are entitled to the economic benefits of the Group. However, it should be noted that shareholders only have a direct interest in the parent company. Any economic benefit from the subsidiaries has to first flow through the parent company before it reaches shareholders. Ultimately, it is the parent company which pays out dividends. If the parent company is the brain, then the subsidiaries will be the limbs and the Group, the body.
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