Agilysys Story

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AGYS -- USA Stock  

USD 24.32  1.32  5.15%

Agilysys is scheduled to announce its earnings today. The next earnings report is expected on the 22nd of October 2020. Agilysys Long Term Debt to Equity is relatively stable at the moment as compared to the past year. Agilysys reported last year Long Term Debt to Equity of 0.0004. As of 07/28/2020, PPandE Turnover is likely to grow to 13.03, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (29.5 M). Although many aggressive traders are getting into technology space, Agilysys may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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Is Agilysys (NASDAQ:AGYS) having difficulty to pay out its debt?
The company currently holds 15.38 M in liabilities with Debt to Equity (D/E) ratio of 0.21, which may suggest Agilysys is not taking enough advantage from borrowing. Agilysys has a current ratio of 1.32, which is within standard range for the sector. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Agilysys has an asset utilization ratio of 86.82 percent. This connotes that the company is making $0.87 for each dollar of assets. An increasing asset utilization means that Agilysys is more efficient with each dollar of assets it utilizes for everyday operations.
Agilysys financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Agilysys, including all of Agilysys'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 Agilysys assets, the company is considered highly leveraged. Understanding the composition and structure of overall Agilysys 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.

Understanding Agilysys Total Liabilities

Agilysys liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Agilysys has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Agilysys balance sheet include debt obligations and money owed to different Agilysys vendors, workers, and loan providers. Below is the chart of Agilysys short long-term liabilities accounts currently reported on its balance sheet.
You can use Agilysys financial leverage analysis tool to get a better grip on understanding its financial position

How important is Agilysys's Liquidity

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

Details

Agilysys price decrease over the last few months could raise concerns from retail investors as the firm closed today at a share price of 17.44 on 209,557 in volume. The company management teams were not very successful in positioning the firm resources to exploit market volatility in June. However, diversifying your holdings with Agilysys or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.72. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Agilysys partners.

Liabilities Breakdown

66.5 M
Current Liabilities
Long-Term Liabilities
Total Liabilities77.82 Million
Current Liabilities66.45 Million
Long-Term Liabilities11.37 Million
Tax Liabilities903,158

Agilysys is epected to finish above $17.52 in August

The total risk alpha is down to -0.95 as of today. Agilysys exhibits very low volatility with skewness of -3.1 and kurtosis of 17.89. However, we advise investors to further study Agilysys technical indicators to make sure all market info is available and is reliable.

Our Bottom Line On Agilysys

While some firms in the software?application industry are either recovering or due for a correction, Agilysys may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Agilysys nor exit your existing holdings in the Stock. It seems the expected volatility 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 Agilysys.

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 Raphi Shpitalnik do not own shares of Agilysys. Please refer to our Terms of Use for any information regarding our disclosure principles.

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