Summit Materials Current Ratio vs. Cash and Equivalents
| SUM Stock | USD 40.19 0.84 2.05% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 3.58 | Current Value 2.12 | Quarterly Volatility 0.72976893 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.22 | 0.24 |
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For Summit Materials profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Summit Materials to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Summit Materials utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Summit Materials's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Summit Materials over time as well as its relative position and ranking within its peers.
Summit |
Is Summit Materials' 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 Summit Materials. If investors know Summit 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 Summit Materials 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 (0.90) | Earnings Share 2.39 | Revenue Per Share 22.004 | Quarterly Revenue Growth 0.195 | Return On Assets 0.0438 |
The market value of Summit Materials is measured differently than its book value, which is the value of Summit that is recorded on the company's balance sheet. Investors also form their own opinion of Summit Materials' value that differs from its market value or its book value, called intrinsic value, which is Summit Materials' 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 Summit Materials' market value can be influenced by many factors that don't directly affect Summit Materials' 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 Summit Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Summit Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Summit Materials' 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.
Summit Materials Cash and Equivalents vs. Current Ratio Fundamental Analysis
Summit Cash and Equivalents vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Summit Materials |
| = | 3.17 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Summit Materials | = | null |
Use Summit Materials 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 Summit Materials 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 Summit Materials will appreciate offsetting losses from the drop in the long position's value.Summit Materials Pair Trading
Summit Materials Pair Trading Analysis
The ability to find closely correlated positions to Summit Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Summit Materials 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 Summit Materials - 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 Summit Materials to buy it.
The correlation of Summit Materials 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 Summit Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Summit Materials 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 Summit Materials 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.Use Investing Themes to Complement your Summit Materials position
In addition to having Summit Materials 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 Retail Thematic Idea Now
Retail
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 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 Retail Theme or any other thematic opportunities.
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Check out World Market Map. To learn how to invest in Summit Stock, please use our How to Invest in Summit Materials guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Complementary Tools for Summit Stock analysis
When running Summit Materials' price analysis, check to measure Summit Materials' 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 Summit Materials is operating at the current time. Most of Summit Materials' value examination focuses on studying past and present price action to predict the probability of Summit Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Summit Materials' price. Additionally, you may evaluate how the addition of Summit Materials to your portfolios can decrease your overall portfolio volatility.
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To fully project Summit Materials' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Summit Materials 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 Summit Materials' income statement, its balance sheet, and the statement of cash flows.