70% of TASI’s non-financial companies earn below their cost of capital

Seven in 10 non-financial TASI companies have returns below their cost of capital, according to the headline.

TASI is the market index named in the headline.

A company’s cost of capital is the cost of financing its business.

Returns below that level mean the companies are not earning enough to cover that financing cost.

The figure points to weak returns across much of the non-financial group, but no individual companies are named.

The headline does not say what period the figure covers or how it was calculated.

It gives no information about what may happen next.