Groupon Working Capital vs. Probability Of Bankruptcy

GRPN Stock  USD 12.82  0.09  0.70%   
Considering Groupon's profitability and operating efficiency indicators, Groupon may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Groupon's ability to earn profits and add value for shareholders. As of the 28th of March 2024, Days Of Sales Outstanding is likely to grow to 41.47, while Price To Sales Ratio is likely to drop 0.74. At this time, Groupon's Income Tax Expense is very stable compared to the past year. As of the 28th of March 2024, Net Income Per E B T is likely to grow to 1.34, though Accumulated Other Comprehensive Income is likely to grow to (5.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.8395
Way Down
Very volatile
For Groupon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Groupon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Groupon utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Groupon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Groupon over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
To learn how to invest in Groupon Stock, please use our How to Invest in Groupon guide.
Is Groupon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Groupon. If investors know Groupon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Groupon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.092
Earnings Share
(1.77)
Revenue Per Share
16.481
Quarterly Revenue Growth
(0.07)
Return On Assets
(0.01)
The market value of Groupon is measured differently than its book value, which is the value of Groupon that is recorded on the company's balance sheet. Investors also form their own opinion of Groupon's value that differs from its market value or its book value, called intrinsic value, which is Groupon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Groupon's market value can be influenced by many factors that don't directly affect Groupon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Groupon's value and its price as these two are different measures arrived at by different means. Investors typically determine if Groupon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Groupon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Groupon Probability Of Bankruptcy vs. Working Capital Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Groupon's current stock value. Our valuation model uses many indicators to compare Groupon value to that of its competitors to determine the firm's financial worth.
Groupon is rated below average in working capital category among related companies. It is one of the top stocks in probability of bankruptcy category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Groupon by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Groupon's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Groupon's earnings, one of the primary drivers of an investment's value.

Groupon Probability Of Bankruptcy vs. Working Capital

Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .

Groupon

Working Capital

 = 

Current Assets

-

Current Liabilities

 = 
(113.57 M)
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.

Groupon

Probability Of Bankruptcy

 = 

Normalized

Z-Score

 = 
78.79 %
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.

Groupon Probability Of Bankruptcy Comparison

Groupon is currently under evaluation in probability of bankruptcy category among related companies.

Groupon Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Groupon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Groupon will eventually generate negative long term returns. The profitability progress is the general direction of Groupon's change in net profit over the period of time. It can combine multiple indicators of Groupon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-5.6 M-5.4 M
Operating Income-10.2 M-10.8 M
Income Before Tax-43.4 M-45.6 M
Total Other Income Expense Net-33.2 M-34.8 M
Net Loss-55.4 M-58.2 M
Income Tax Expense9.5 M14.3 M
Net Loss-135.7 M-128.9 M
Non Operating Income Net Other-27.8 M-29.2 M
Net Loss-213.8 M-203.2 M
Interest Income13.9 M7.1 M
Net Interest Income-4.6 M-4.8 M
Change To Netincome158.4 M97.7 M
Net Income Per E B T 1.28  1.34 

Groupon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Groupon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Groupon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Groupon's important profitability drivers and their relationship over time.

Use Groupon in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Groupon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Groupon will appreciate offsetting losses from the drop in the long position's value.

Groupon Pair Trading

Groupon Pair Trading Analysis

The ability to find closely correlated positions to Groupon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Groupon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Groupon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Groupon to buy it.
The correlation of Groupon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Groupon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Groupon moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Groupon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Groupon position

In addition to having Groupon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Technology Thematic Idea Now

Technology
Technology Theme
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Technology Theme or any other thematic opportunities.
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When determining whether Groupon offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Groupon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Groupon Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Groupon Stock:
Check out Risk vs Return Analysis.
To learn how to invest in Groupon Stock, please use our How to Invest in Groupon guide.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Groupon's price analysis, check to measure Groupon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Groupon is operating at the current time. Most of Groupon's value examination focuses on studying past and present price action to predict the probability of Groupon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Groupon's price. Additionally, you may evaluate how the addition of Groupon to your portfolios can decrease your overall portfolio volatility.
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To fully project Groupon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Groupon at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Groupon's income statement, its balance sheet, and the statement of cash flows.
Potential Groupon investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Groupon investors may work on each financial statement separately, they are all related. The changes in Groupon's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Groupon's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.