Is Anthem way too volitale for you?
By Raphi Shpitalnik | Macroaxis Story |
19% of stocks are less volatile than Anthem, and 96% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many old-fashioned traders are trying to avoid healthcare space, it makes sense to summarize Anthem Inc a little further and try to understand its current volatility patterns. We will evaluate if Anthem's current volatility will continue into February.
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Reviewed by Gabriel Shpitalnik
Anthem Inc currently holds 22.85 B in liabilities with Debt to Equity (D/E) ratio of 0.67, which is about average as compared to similar companies. The entity has a current ratio of 1.56, which is within standard range for the sector. Volatility is a rate at which the price of Anthem or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Anthem may increase or decrease. In other words, similar to Anthem's beta indicator, it measures the risk of Anthem and helps estimate the fluctuations that may happen in a short period of time. So if prices of Anthem fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Anthem's Liquidity
Anthem financial leverage refers to using borrowed capital as a funding source to finance Anthem Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Anthem 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 Anthem'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 Anthem'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 Anthem's total debt and its cash.
Detailed Perspective On Anthem
The firm reported the previous year's revenue of 117.45 B. Net Income was 4.95 B with profit before overhead, payroll, taxes, and interest of 22.43 B.
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