AeroCentury Corp has roughly 4.86
M in cash with 6.01
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.15.
We provide trade advice to complement the prevailing
expert consensus on AeroCentury Corp. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
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.
AeroCentury Corp Correlation with Peers
Investors in AeroCentury can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AeroCentury Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AeroCentury Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AeroCentury is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of AeroCentury for more details
Is AeroCentury Corp valued reasonably by the market?
AeroCentury Corp is extremely dangerous given 1 month investment horizon.
AeroCentury Corp secures Sharpe Ratio (or Efficiency) of 0.0681, which signifies that the company had 0.0681% of return per unit of risk over the last month. Our standpoint towards foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to break down twenty-seven different
technical indicators, which can help you to evaluate if expected returns of 1.63% are justified by taking the suggested risk. Use AeroCentury Corp Risk Adjusted Performance of 0.0576,
downside deviation of 12.89, and Mean Deviation of 10.76 to evaluate company specific risk that cannot be
diversified away.
Our take on today AeroCentury Corp rise
The value at risk is down to -19.7 as of today. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AeroCentury Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact AeroCentury Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on AeroCentury Corp
While many of the other players 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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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of AeroCentury Corp. Please refer to our
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