Is PSIG's expense growth sustainable long-term?

**PS International Group's (PSIG) expense growth appears to be unsustainable in the long term**. Several indicators suggest that the company is facing significant challenges that could impact its financial performance over an extended period.

1. **Earnings Decline**: PSIG's earnings have been declining at an average annual rate of -33.2%. This is a stark indicator of deteriorating financial health and suggests that the company is losing profitability at an accelerating rate.
2. **Revenue Growth**: While revenues have been growing at an average rate of 8.3% per year, this growth has not been sufficient to offset the negative impact of declining earnings. The company's revenue growth rate is lower than the average annual rate of -33.2% earnings decline, which implies that the revenue growth is not sustainable in the context of increasing expenses.
3. **Net Margin**: PSIG has a negative net margin of -5.5%. A negative net margin indicates that the company's expenses are exceeding its revenues, which is a clear sign of unsustainable expense growth.
4. **Return on Equity (ROE)**: The company's ROE is -44.6%, which is deeply in the red. A negative ROE suggests that the company is not only not generating profits but is also losing shareholders' equity, which is a critical indicator of long-term sustainability.
5. **Debt Management**: PSIG's reliance on issuing new long-term debt securities to make payments on existing debt may raise concerns about its financial stability and ability to manage debt responsibly. This could lead to increased financial burdens and potential liquidity issues in the long term.

In conclusion, the combination of declining earnings, negative net margins, and a negative ROE, along with the company's debt management practices, points to an unsustainable expense growth trajectory for PSIG in the long term. The company needs to address these fundamental issues to ensure its financial stability and profitability over an extended period.