African Metals Current Ratio vs. Retained Earnings
| AFR Stock | CAD 0.01 0.01 33.33% |
For African Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of African Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well African Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between African Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of African Metals over time as well as its relative position and ranking within its peers.
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African Metals Retained Earnings vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining African Metals's current stock value. Our valuation model uses many indicators to compare African Metals value to that of its competitors to determine the firm's financial worth. African Metals is number one stock in current ratio category among its peers. It also is number one stock in retained earnings category among its peers . African Metals reported Retained Earnings of (36.51 Million) in 2023. 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 African Metals' earnings, one of the primary drivers of an investment's value.African Retained Earnings 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.
African Metals |
| = | 0.01 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).
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
African Metals |
| = | (31.75 M) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
African Retained Earnings Comparison
African Metals is currently under evaluation in retained earnings category among its peers.
African Metals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in African Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, African Metals will eventually generate negative long term returns. The profitability progress is the general direction of African Metals' change in net profit over the period of time. It can combine multiple indicators of African Metals, 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 Reported | Projected for Next Year | ||
| Net Loss | -487 K | -462.6 K | |
| Net Interest Income | 0.00 | 0.00 | |
| Interest Income | 0.00 | 0.00 | |
| Operating Income | -480.8 K | -504.8 K | |
| Net Loss | -487 K | -462.6 K | |
| Income Before Tax | -487 K | -462.6 K | |
| Total Other Income Expense Net | -6.2 K | -5.9 K | |
| Net Loss | -487 K | -462.6 K | |
| Change To Netincome | 13.3 K | 14 K |
African Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on African Metals. 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 African Metals 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 African Metals' important profitability drivers and their relationship over time.
Use African Metals 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 African Metals 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 African Metals will appreciate offsetting losses from the drop in the long position's value.African Metals Pair Trading
African Metals Pair Trading Analysis
The ability to find closely correlated positions to African Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace African Metals 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 African Metals - 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 African Metals to buy it.
The correlation of African Metals 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 African Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if African Metals 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 African Metals 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 African Metals position
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Additional Tools for African Stock Analysis
When running African Metals' price analysis, check to measure African Metals' 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 African Metals is operating at the current time. Most of African Metals' value examination focuses on studying past and present price action to predict the probability of African Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move African Metals' price. Additionally, you may evaluate how the addition of African Metals to your portfolios can decrease your overall portfolio volatility.