Shopify Stock Current Ratio
| SHOP Stock | USD 74.01 3.46 4.90% |
Shopify fundamentals help investors to digest information that contributes to Shopify's financial success or failures. It also enables traders to predict the movement of Shopify Stock. The fundamental analysis module provides a way to measure Shopify's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Shopify stock.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 6.99 | 7.33 |
Shopify | Current Ratio |
Shopify Company Current Ratio Analysis
Shopify's 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.
Current Shopify Current Ratio | 6.64 X |
Most of Shopify's fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Shopify is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Shopify Current Ratio Driver Correlations
Understanding the fundamental principles of building solid financial models for Shopify is extremely important. It helps to project a fair market value of Shopify Stock properly, considering its historical fundamentals such as Current Ratio. Since Shopify's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Shopify's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Shopify's interrelated accounts and indicators.
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Shopify Current Ratio Historical Pattern
Today, most investors in Shopify Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Shopify's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current ratio growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Shopify current ratio as a starting point in their analysis.
Shopify Current Ratio |
| Timeline |
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).
| Competition |
Shopify Price To Sales Ratio
Price To Sales Ratio |
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In accordance with the recently published financial statements, Shopify has a Current Ratio of 6.64 times. This is 134.63% higher than that of the IT Services sector and significantly higher than that of the Information Technology industry. The current ratio for all United States stocks is notably lower than that of the firm.
Shopify Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Shopify's direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Shopify could also be used in its relative valuation, which is a method of valuing Shopify by comparing valuation metrics of similar companies.Shopify is currently under evaluation in current ratio category among related companies.
Shopify Current Valuation Drivers
We derive many important indicators used in calculating different scores of Shopify from analyzing Shopify's financial statements. These drivers represent accounts that assess Shopify's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Shopify's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 44.9B | 135.3B | 171.7B | 44.0B | 99.8B | 52.4B | |
| Enterprise Value | 44.4B | 133.6B | 170.4B | 43.7B | 99.6B | 51.9B |
Shopify Fundamentals
| Return On Equity | 0.0153 | ||||
| Return On Asset | 0.0147 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.22 % | ||||
| Current Valuation | 86.92 B | ||||
| Shares Outstanding | 1.21 B | ||||
| Shares Owned By Insiders | 0.18 % | ||||
| Shares Owned By Institutions | 70.63 % | ||||
| Number Of Shares Shorted | 16.97 M | ||||
| Price To Earning | 282.85 X | ||||
| Price To Book | 9.94 X | ||||
| Price To Sales | 12.76 X | ||||
| Revenue | 7.06 B | ||||
| Gross Profit | 2.75 B | ||||
| EBITDA | (88 M) | ||||
| Net Income | 132 M | ||||
| Cash And Equivalents | 1.65 B | ||||
| Cash Per Share | 3.88 X | ||||
| Total Debt | 1.15 B | ||||
| Debt To Equity | 0.15 % | ||||
| Current Ratio | 6.64 X | ||||
| Book Value Per Share | 7.05 X | ||||
| Cash Flow From Operations | 944 M | ||||
| Short Ratio | 2.56 X | ||||
| Earnings Per Share | 0.10 X | ||||
| Price To Earnings To Growth | 1.12 X | ||||
| Target Price | 82.7 | ||||
| Number Of Employees | 8.3 K | ||||
| Beta | 2.2 | ||||
| Market Capitalization | 90.81 B | ||||
| Total Asset | 11.3 B | ||||
| Retained Earnings | (390 M) | ||||
| Working Capital | 5.38 B | ||||
| Current Asset | 202.47 M | ||||
| Current Liabilities | 37.24 M | ||||
| Net Asset | 11.3 B |
About Shopify Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Shopify's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Shopify using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Shopify based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:Check out Shopify Piotroski F Score and Shopify Altman Z Score analysis. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Complementary Tools for Shopify Stock analysis
When running Shopify's price analysis, check to measure Shopify'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 Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.
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Is Shopify'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 Shopify. If investors know Shopify 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 Shopify 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 4.858 | Earnings Share 0.1 | Revenue Per Share 5.509 | Quarterly Revenue Growth 0.236 | Return On Assets 0.0147 |
The market value of Shopify is measured differently than its book value, which is the value of Shopify that is recorded on the company's balance sheet. Investors also form their own opinion of Shopify's value that differs from its market value or its book value, called intrinsic value, which is Shopify'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 Shopify's market value can be influenced by many factors that don't directly affect Shopify'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 Shopify's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shopify is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shopify'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.