Residual Sum of Squares (RSS): What It Is and How to Calculate It

The financial performance of the companies featured in the second quarter of 2025 reveals a mix of growth and challenges. Here's a detailed analysis: 1. **Li Auto Inc.**: Li Auto Inc. experienced a significant increase in total assets, with a slight decrease in current liabilities. This indicates a solid financial foundation. However, the diluted net earnings per share decreased from $0.76 in the previous quarter to $0.71 in the second quarter. This could be a concern for investors regarding the company's profitability trend. 2. **Alarum Technologies**: Alarum Technologies showed a positive trend in financial income, transitioning from a net financial expense in the previous year to a net financial income in the second quarter. This improvement, along with a non-IFRS gross profit of $10.5 million for the period, suggests a strengthening financial position and operational efficiency. 3. **Sound Group Inc.**: Sound Group Inc. reported a non-GAAP gross profit of $5.6 million for the six months ended June 30, 2025, which is a decrease from the previous year's $6.9 million. This indicates a challenge in maintaining profitability. Additionally, the company's adjusted net income per share was $0.42, which is lower than the previous year's $1.58. These figures suggest a decline in profitability and earnings per share. 4. **Malibu Boats, Inc.**: Malibu Boats, Inc. experienced a significant impairment of goodwill and trade names related to its Maverick Boat Group reporting unit. This impairment, along with a loss in the previous year, indicates challenges in maintaining the value of its intangible assets. However, the company's adjusted net income per share for fiscal 2025 was $1.58, which is higher than the previous year's $2.01. This suggests a potential improvement in net income, despite the impairment. 5. **DICK'S Sporting Goods**: DICK'S Sporting Goods reported a strong gross profit of $1,351.27 million for the quarter, with a selling, general, and administrative expense of $878.737 million. The company also raised its 2025 outlook, indicating a positive market sentiment and confidence in its future performance. 6. **Greatland Resources**: Greatland Resources showed a significant profit for the year of $337.26 million, with a total equity of $1,340.111 million. This indicates a strong financial performance and equity base, which could be a positive sign for investors looking for stable and profitable companies. 7. **Greif**: Greif, Inc. reported a net income of $44.7 million for the quarter, with a net income of $84.5 million in the previous year. This indicates a decline in profitability. Additionally, the company reported significant depreciation and amortization expenses, as well as acquisition and integration related costs. These figures suggest that Greif is facing challenges in maintaining profitability and managing its costs effectively. In conclusion, while some companies showed strong financial performance and improvements in profitability, others faced challenges such as declines in profitability and increased costs. Investors should consider these factors along with other market conditions and company-specific factors when evaluating investment opportunities.