By analyzing existing basic indicators between Afya and New Oriental, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in New Oriental with a short position in Afya. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Afya has an asset utilization ratio of 67.46 percent. This suggests that the company is making $0.67 for each dollar of assets. An increasing asset utilization means that Afya Ltd Cl is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Afya. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Afya, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Afya's Liquidity
Afya
financial leverage refers to using borrowed capital as a funding source to finance Afya ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Afya 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 Afya'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 Afya'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 Afya's total debt and its cash.
Afya Gross Profit
Afya Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Afya previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Afya Gross Profit growth over the last 10 years. Please check Afya's
gross profit and other
fundamental indicators for more details.
Details
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Afya revenue. Based on the latest financial disclosure, Afya Ltd Cl reported 2.12
B of revenue. This is 85.73% lower than that of the Consumer Defensive sector and 164.74% higher than that of the
Education & Training Services industry. The revenue for all United States stocks is 77.53% higher than that of Afya. As for New Oriental we see revenue of 3.11
B, which is 288.37% higher than that of the Education & Training Services
| Afya | 2.12 Billion |
| Sector | 800.78 Million |
| New Oriental | 3.11 Billion |
Will Afya investors exit after the slip?
The risk adjusted performance is down to 0.17 as of today. Afya Ltd Cl currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.29. However, we advise investors to further question Afya Ltd Cl expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Afya's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Afya'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 Afya
Whereas some other companies in the education & training services industry are either recovering or due for a correction, Afya may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to acquire new shares of Afya or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Afya.
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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 Afya. Please refer to our
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