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.
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. Financial leverage can amplify the potential profits to AeroCentury Corp'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 AeroCentury Corp'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 AeroCentury Corp's total debt and its cash.
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 Assets | 179.45 Million |
| Current Assets | 2.27 Million |
| Assets Non Current | 12.6 Million |
| Goodwill | 772,426 |
| Tax Assets | 496,121 |
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.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of AeroCentury Corp. Please refer to our
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