Warren Buffet’s 4 financial ratios he checks before every investment. The thresholds are:
ROE >15%, Debt/Equity <0.5, Current Ratio >1.5, Operating or Profit Margin >15%.

Comparing Hartalega and Intco

Sources and dates used:

Hartalega (HARTA, KLSE:5168): Latest quarterly report for FPE 31 Dec 2025 (Q3 FY2026), released 10 Feb 2026. I pulled revenue, operating profit, net profit, equity, debt, current assets & liabilities directly from the QR. [docs.publicnow.com], [marketscreener.com]

INTCO Medical (SHE:300677): Latest TTM/ratio set as of Feb 2026 (ROE, D/E, current ratio) from S&P/StockAnalysis; margins corroborated with Yahoo Finance TTM line items. (INTCO’s next formal 2025 results are guided for Apr 24, 2026, so TTM is the freshest consolidated view now.) [stockanalysis.com], [finance.yahoo.com], [simplywall.st]

Computation:

Hartalega (QR for FPE 31 Dec 2025, released 10 Feb 2026)

Operating margin (Q3): 36,296 / 527,251 = 6.9%. [docs.publicnow.com]
Net margin (Q3): 31,671 / 527,251 = 6.0%. [docs.publicnow.com]
Debt/Equity: (Loans & borrowings: 6,654 LT + 594 ST = 7,248) / Equity (owners) 4,386,882 ≈ 0.00165×. [docs.publicnow.com]
Current ratio: Current assets 1,808,177 / Current liabilities 224,622 ≈ 8.05×. [docs.publicnow.com]
ROE (annualised run‑rate): 9M FY2026 NP 61,901 × (12/9) ≈ 82,535 / avg equity (~(4,318,931 + 4,386,568)/2) ≈ 1.9%. [docs.publicnow.com]

Interpretation: Hartalega’s balance sheet is extremely strong (nearly net-cash, very high liquidity), but current profitability is thin, so it fails the ROE and margin hurdles for now. [docs.publicnow.com]

INTCO Medical (latest TTM/ratios as of Feb 2026; quarterly detail pending next filing):

ROE: 9.84% TTM (S&P/StockAnalysis). [stockanalysis.com]
Debt/Equity: 0.96× (S&P/StockAnalysis). [stockanalysis.com]
Current ratio: 1.34× (S&P/StockAnalysis). [stockanalysis.com]
Operating margin (TTM): Operating income 1,089,361 / Revenue 9,849,586 ≈ 11.1% (Yahoo Finance). [finance.yahoo.com]
Net margin (TTM): Net income 1,702,420 / Revenue 9,849,586 ≈ 17.3% (Yahoo Finance). [finance.yahoo.com]

Interpretation: INTCO shows healthy net margin TTM but carries meaningful leverage and a sub‑1.5 current ratio, so it does not clear the D/E and liquidity bars. [stockanalysis.com]

In conclusion, bottom line vs the thresholds between Hartalega and Intco,

Hartalega:
Pass → Debt/Equity, Current Ratio
Fail → ROE 15%, Operating/Net margin 15% (at Q3 run‑rate) [docs.publicnow.com]

INTCO Medical:
Pass → Net margin 15% (TTM)
Fail → ROE 15%, D/E <0.5, Current Ratio >1.5, Operating margin 15% (TTM) [stockanalysis.com], [finance.yahoo.com]