| 2017 | 2018 | 2019 | 2020 (projected) | Receivables | 11.31 B | 12.39 B | 11.15 B | 9.04 B | Inventories | 11.92 B | 11.06 B | 9.95 B | 8.9 B |
Breaking up AmerisourceBergen (NYSE:ABC) risk factors?
 | By Vlad Skutelnik | Macroaxis Story |
16% of stocks are less volatile than AmerisourceBergen, and above 95% of all equities are expected to generate higher returns over the next 90 days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to go over the risk of investing in AmerisourceBergen. We will analyze how risky is to take a position in AmerisourceBergen at this time. AmerisourceBergen's very low volatility may have no significant impact on the stock's value as we estimate AmerisourceBergen as currently fairly valued. The real value, based on our calculations, is getting close to 101.05 per share.
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Reviewed by Ellen Johnson
AmerisourceBergen has roughly 3.69 B in cash with 2.24 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 18.15. Volatility is a rate at which the price of AmerisourceBergen or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of AmerisourceBergen may increase or decrease. In other words, similar to AmerisourceBergen's beta indicator, it measures the risk of AmerisourceBergen and helps estimate the fluctuations that may happen in a short period of time. So if prices of AmerisourceBergen fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is AmerisourceBergen's Liquidity
AmerisourceBergen financial leverage refers to using borrowed capital as a funding source to finance AmerisourceBergen ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AmerisourceBergen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AmerisourceBergen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AmerisourceBergen's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AmerisourceBergen's total debt and its cash.
Breaking down AmerisourceBergen Further
AmerisourceBergen reported the last year's revenue of 186.16 B. Total Income to common stockholders was 1.58 B with profit before taxes, overhead, and interest of 4.99 B.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of AmerisourceBergen. Please refer to our Terms of Use for any information regarding our disclosure principles.