NetSol Technologies Financials
| NTWK Stock | USD 2.05 0.02 0.99% |
Quarterly Earnings Growth (0.72) | Diluted Eps (0.40) |
The financial analysis of NetSol Technologies is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for NetSol Technologies includes many different criteria found on its balance sheet. For example, investors should never minimize NetSol Technologies' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor NetSol Technologies' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in NetSol Technologies.
Cash and Equivalents |
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With this module, you can analyze NetSol financials for your investing period. You should be able to track the changes in NetSol Technologies individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
NetSol | Select Account or Indicator |
Understanding current and past NetSol Technologies Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of NetSol Technologies' financial statements are interrelated, with each one affecting the others. For example, an increase in NetSol Technologies' assets may result in an increase in income on the income statement.
Evaluating NetSol Technologies' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of NetSol Technologies' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the NetSol Technologies' relative financial performance
Chance Of Distress
Less than 33
100 | Zero |
Below Average
NetSol Technologies has less than 33 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for NetSol Technologies stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, NetSol Technologies' odds of distress score SHOULD NOT be confused with the real chance of NetSol Technologies filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as NetSol 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 public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include NetSol Technologies' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More InfoThe data published in NetSol Technologies' official financial statements usually reflect NetSol Technologies' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of NetSol Technologies. For example, before you start analyzing numbers published by NetSol accountants, it's critical to develop an understanding of what NetSol Technologies' liquidity, profitability, and earnings quality are in the context of the Software space in which it operates.
Please note, the presentation of NetSol Technologies' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NetSol Technologies' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in NetSol Technologies' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of NetSol Technologies. Please utilize our Beneish M Score to check the likelihood of NetSol Technologies' management manipulating its earnings.
NetSol Technologies Company Summary
NetSol Technologies competes with United Utilities, Alliant Energy, Calliditas Therapeutics, Atmos Energy, and Analog Devices. NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company was incorporated in 1997 and is headquartered in Calabasas, California. Netsol Tech operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1781 people.Specialization | Information Technology, Software - Application |
| Instrument | USA Stock View All |
| Exchange | NASDAQ Exchange |
| CIK Number | 0001039280 |
| ISIN | US64115A4022 |
| CUSIP | 64115A105 |
| Region | North America |
| Location | California; U.S.A |
| Business Address | 23975 Park Sorrento, |
| Sector | Software |
| Industry | Information Technology |
| Benchmark | NYSE Composite |
| Website | www.netsoltech.com |
| Phone | 818 222 9195 |
| Currency | USD - US Dollar |
You should never invest in NetSol Technologies without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of NetSol Stock, because this is throwing your money away. Analyzing the key information contained in NetSol Technologies' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.
NetSol Technologies Key Financial Ratios
Generally speaking, NetSol Technologies' financial ratios allow both analysts and investors to convert raw data from NetSol Technologies' financial statements into concise, actionable information that can be used to evaluate the performance of NetSol Technologies over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that NetSol Technologies reports annually and quarterly.| Return On Asset | -0.0668 | ||||
| Profit Margin | (0.09) % | ||||
| Operating Margin | 0.0246 % |
NetSol Technologies Key Balance Sheet Accounts
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Receivables | 31.5M | 28.6M | 19.0M | 23.3M | 11.8M | 12.1M | |
| Accounts Payable | 1.2M | 1.4M | 1.1M | 1.2M | 1.1M | 1.3M | |
| Total Assets | 87.5M | 88.5M | 86.6M | 72.6M | 58.4M | 68.0M | |
| Current Assets | 50.9M | 51.9M | 55.6M | 49.4M | 41.6M | 47.8M | |
| Assets Non Current | 36.6M | 36.6M | 31.0M | 23.2M | 16.8M | 17.2M | |
| Cash and Equivalents | 17.4M | 20.2M | 33.7M | 24.0M | 15.5M | 18.5M | |
| Total Debt | 7.5M | 13.1M | 13.5M | 10.0M | 7.1M | 8.7M | |
| Debt Current | 6.9M | 10.3M | 12.2M | 9.1M | 6.3M | 7.7M | |
| Debt Non Current | 564.6K | 2.9M | 1.3M | 923.5K | 828.4K | 1.0M | |
| Deferred Revenue | 6.0M | 4.1M | 4.6M | 4.9M | 7.9M | 6.9M | |
| Investments | 6.3M | 6.6M | 3.2M | 1.1M | 1.2M | 1.3M | |
| Total Liabilities | 21.0M | 23.0M | 24.7M | 21.8M | 21.6M | 22.8M | |
| Current Liabilities | 20.4M | 20.1M | 23.5M | 20.8M | 20.8M | 21.8M |
NetSol Technologies Key Income Statement Accounts
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what NetSol Technologies' earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Direct Expenses | 33.4M | 29.4M | 28.6M | 33.5M | 35.5M | 30.5M | |
| Consolidated Income | 12.0M | 1.2M | 2.3M | 1.1M | (4.1M) | (4.3M) | |
| Cost of Revenue | 32.9M | 29.4M | 28.6M | 33.5M | 35.5M | 36.8M | |
| Gross Profit | 34.9M | 27.0M | 26.4M | 23.7M | 16.9M | 23.3M | |
| Interest Expense | 311.8K | 346.9K | 394.3K | 369.8K | 765.0K | 627.5K | |
| Net Income | 8.6M | 937.1K | 1.8M | (851.2K) | (5.2M) | (5.4M) | |
| Operating Expenses | 28.1M | 25.9M | 23.6M | 24.8M | 25.7M | 27.7M | |
| Operating Income | 6.8M | 1.1M | 2.7M | (1.1M) | (8.8M) | (9.0M) | |
| Revenues | 67.8M | 56.4M | 54.9M | 57.2M | 52.4M | 60.0M | |
| Income Tax Expense | 1.1M | 1.1M | 1.0M | 988.9K | 926.6K | 951.6K |
NetSol Technologies Key Cash Accounts
Cash flow analysis captures how much money flows into and out of NetSol Technologies. It measures of how well NetSol is doing because it can show the actual money that comes into and out of the company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money NetSol Technologies brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money NetSol had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what NetSol Technologies has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Capital Expenditure | (1.6M) | (1.3M) | (2.4M) | (2.3M) | (1.4M) | (1.5M) | |
| Depreciation Amortization and Accretion | 4.4M | 3.7M | 4.0M | 3.8M | 3.2M | 4.1M | |
| Net Cash Flow or Change in Cash and Cash Equivalents | (4.7M) | 2.8M | 13.5M | (9.7M) | (8.4M) | (8.7M) | |
| Net Cash Flow Business Acquisitions and Disposals | (230K) | (250K) | (94.5K) | (155.5K) | (140.0K) | (151.0K) | |
| Issuance Purchase of Equity Shares | (438.4K) | (165.9K) | (2.4M) | (100.1K) | (90.1K) | (92.5K) | |
| Issuance Repayment of Debt Securities | 746.9K | 3.6M | 1.2M | (328.3K) | (657.9K) | (675.2K) | |
| Net Cash Flow from Financing | 17.2K | 1.7M | (1.2M) | (1.4M) | (719.0K) | (737.9K) | |
| Net Cash Flow from Investing | (3.6M) | (2.1M) | (2.5M) | (2.3M) | (1.4M) | (1.5M) | |
| Net Cash Flow from Operations | 4.9M | 4.0M | 15.7M | 3.1M | 2.0M | 2.1M | |
| Effect of Exchange Rate Changes on Cash | (6.0M) | (817.4K) | 1.5M | (9.2M) | (8.3M) | (8.5M) | |
| Share Based Compensation | 1.2M | 808.6K | 342.2K | 104.3K | 317.5K | 325.8K |
NetSol Financial Ratios Relationships
Comparative valuation techniques use various fundamental indicators to help in determining NetSol Technologies's current stock value. Our valuation model uses many indicators to compare NetSol Technologies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across NetSol Technologies competition to find correlations between indicators driving NetSol Technologies's intrinsic value. More Info.NetSol Technologies is considered to be number one stock in earnings per share category among related companies. It is considered to be number one stock in gross profit category among related companies . At this time, NetSol Technologies' Gross Profit is quite stable as compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value NetSol Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NetSol Technologies' 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 NetSol Technologies' earnings, one of the primary drivers of an investment's value.NetSol Technologies Systematic Risk
NetSol Technologies' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. NetSol Technologies volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was fourteen with a total number of output elements of fourty-seven. The Beta measures systematic risk based on how returns on NetSol Technologies correlated with the market. If Beta is less than 0 NetSol Technologies generally moves in the opposite direction as compared to the market. If NetSol Technologies Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one NetSol Technologies is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of NetSol Technologies is generally in the same direction as the market. If Beta > 1 NetSol Technologies moves generally in the same direction as, but more than the movement of the benchmark..
About NetSol Technologies Financials
What exactly are NetSol Technologies Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include NetSol Technologies' income statement, its balance sheet, and the statement of cash flows. Potential NetSol Technologies investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although NetSol Technologies investors may use each financial statement separately, they are all related. The changes in NetSol Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NetSol Technologies'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.Steps to analyze NetSol Technologies Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as NetSol Technologies is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of NetSol has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if NetSol Technologies' financials are consistent with your investment objective using the following steps:- Review NetSol Technologies' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
- Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
- Study the cash flow inflows and outflows to understand NetSol Technologies' liquidity and solvency.
- Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
- Compare NetSol Technologies' financials to those of its peers to see how it stacks up and identify any potential red flags.
- Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if NetSol Technologies' stock is overvalued or undervalued.
NetSol Technologies Thematic Clasifications
NetSol Technologies is part of several thematic ideas from Data Storage to Software. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic IdeasNetSol Technologies December 6, 2023 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of NetSol Technologies help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of NetSol Technologies. We use our internally-developed statistical techniques to arrive at the intrinsic value of NetSol Technologies based on widely used predictive technical indicators. In general, we focus on analyzing NetSol Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build NetSol Technologies's daily price indicators and compare them against related drivers.
| Information Ratio | (0.003086) | |||
| Maximum Drawdown | 29.93 | |||
| Value At Risk | (5.24) | |||
| Potential Upside | 5.85 |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NetSol Technologies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. For more information on how to buy NetSol Stock please use our How to buy in NetSol Stock guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for NetSol Stock analysis
When running NetSol Technologies' price analysis, check to measure NetSol Technologies' 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 NetSol Technologies is operating at the current time. Most of NetSol Technologies' value examination focuses on studying past and present price action to predict the probability of NetSol Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetSol Technologies' price. Additionally, you may evaluate how the addition of NetSol Technologies to your portfolios can decrease your overall portfolio volatility.
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Is NetSol Technologies' 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 NetSol Technologies. If investors know NetSol 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 NetSol Technologies 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 (0.72) | Earnings Share (0.40) | Revenue Per Share 4.772 | Quarterly Revenue Growth 0.121 | Return On Assets (0.07) |
The market value of NetSol Technologies is measured differently than its book value, which is the value of NetSol that is recorded on the company's balance sheet. Investors also form their own opinion of NetSol Technologies' value that differs from its market value or its book value, called intrinsic value, which is NetSol Technologies' 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 NetSol Technologies' market value can be influenced by many factors that don't directly affect NetSol Technologies' 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 NetSol Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if NetSol Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetSol Technologies' 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.