Part 3 — Simulating corporate analysis judgments with CEI + CGI
<Quadrant Matrix>
Area A (CEI high + CGI high) — Really good company
Assets are efficient and funds raised are properly invested in the business. Suitable for long-term holding.
Zone B (CEI high + CGI low) — Outwardly superior company ← Most risky
The financial statements are clean and asset efficiency is good, but money is not spent on business after issuing CB. The analyst report is also positive, but the CB interest play cycle has already begun. Immediate alert if CGI falls for three consecutive quarters.
Zone C (low CEI + high CGI) — Likely to be a company undergoing growth investment
Cash is used properly in business, but efficiency is still low. This may be immediately after investment in factories and facilities. The criterion for judgment is whether CEI has improved after 12 months.
Zone D (low CEI + low CGI) — Immediate review
If two things are bad at the same time, it is most likely not a coincidence. Historically, companies staying in Zone D for a long period of time often ended up being managed or decommissioned.
Raymonds Index 2026
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