Four lessons for investors in wake of Hyflux's fall

In its case, like for Ezra and Swiber, investors who sought high yields ended up losing big

Teh Hooi Ling
Companies whose total liabilities amount to less than 40 per cent of their total assets are safer than those whose ratios are 60 per cent and above, says the writer. In Hyflux's case, for most of the past 10 years, that ratio was above 60 per cent. I
Companies whose total liabilities amount to less than 40 per cent of their total assets are safer than those whose ratios are 60 per cent and above, says the writer. In Hyflux's case, for most of the past 10 years, that ratio was above 60 per cent. In the financial year ended 2017, it was 72 per cent. PHOTO: LIANHE ZAOBAO READER
Updated
Mar 11, 2019, 07:41 AM
Published
Mar 10, 2019, 05:00 AM
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Hyflux is the latest case in which investors who sought high yields ended up losing a huge chunk of their capital.

Not too long ago, we saw this happening to investors in the securities of Ezra Holdings and Swiber Holdings.

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A version of this article appeared in the print edition of The Sunday Times on March 10, 2019, with the headline Four lessons for investors in wake of Hyflux's fall. Subscribe

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