AeroCentury Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:4em;'>AC</div>
ACY -- USA Stock  

USD 9.75  1.46  17.61%

The stock experiences an active upward rally. AeroCentury Corp Book Value per Share is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Book Value per Share of 15.05 in 2019. Current Ratio is likely to rise to 1.15 in 2020, whereas Earnings before Tax are likely to drop (21.7 M) in 2020. As many millenniums are trying to avoid industrials space, it makes sense to break down AeroCentury Corp a little further and try to understand its current market patterns.
Published over three weeks ago
View all stories for AeroCentury Corp | View All Stories
How much will AeroCentury Corp owe in January?
This firm has 112.62 M in debt. The company has a current ratio of 4.31, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AeroCentury Corp has an asset utilization ratio of 9.68 percent. This suggests that the company is making $0.0968 for each dollar of assets. An increasing asset utilization means that AeroCentury Corp is more efficient with each dollar of assets it utilizes for everyday operations.
AeroCentury Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of AeroCentury Corp, including all of AeroCentury Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of AeroCentury Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall AeroCentury Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is AeroCentury Corp's Liquidity

AeroCentury Corp financial leverage refers to using borrowed capital as a funding source to finance AeroCentury Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AeroCentury Corp 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. Please check the breakdown between AeroCentury Corp's total debt and its cash.

How AeroCentury utilizes its cash?

To perform a cash flow analysis of AeroCentury Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AeroCentury Corp is receiving and how much cash it distributes out in a given period. The AeroCentury Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AeroCentury Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Net Cash Flow from Operations of 9.4 Million in 2020

Purchase by Michael Magnusson of 1000 shares of AeroCentury Corp

Legal trades by AeroCentury Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AeroCentury insider trading alert for perchase of common stock by Michael Magnusson, President, on 23rd of August 2020. This event was filed by Aerocentury Corp with SEC on 2019-11-22. Statement of changes in beneficial ownership - SEC Form 4. Michael Magnusson currently serves as president, director and managing director of jmc of AeroCentury Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is AeroCentury Corp valued reasonably by the market?

AeroCentury Corp reported the last year's revenue of 17.53 M. Reported Net Loss for the year was (34.82 M) with profit before taxes, overhead, and interest of 42.59 M.

Asset Breakdown

Total Assets179.45 Million
Current Assets2.27 Million
Assets Non Current12.6 Million
Goodwill772,426
Tax Assets496,121

Our take on today AeroCentury Corp rise

Current semi variance is at 45.55. AeroCentury Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about AeroCentury Corp implied risk.

Our Conclusion on AeroCentury Corp

While some other firms under the rental & leasing services industry are still a bit expensive, AeroCentury Corp may offer a potential longer-term growth to investors. The inconsistency in the assessment between current AeroCentury valuation and our trade advice on AeroCentury Corp is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AeroCentury Corp.

About Contributor

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 Achuva Shats do not own shares of AeroCentury Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com