The company currently holds 384.14
M in liabilities with Debt to Equity (D/E) ratio of 0.45, which is about average as compared to similar companies. Arcbest Corp has a current ratio of 1.5, which is within standard range for the sector.
The firm shows a Beta (market volatility) of 0.6507, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Arcbest's beta means in this case. As returns on the market increase, Arcbest Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Arcbest Corp will be expected to be smaller as well. Even though it is essential to pay attention to
Arcbest Corp historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Arcbest Corp exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Arcbest Corp has an expected return of -0.41%. Please be advised to confirm Arcbest Corp
mean deviation,
standard deviation,
treynor ratio, as well as the
relationship between the
downside deviation and
information ratio to decide if
Arcbest Corp performance from the past will be repeated at some point in the near future.
ArcBest Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ArcBest Corp, including all of ArcBest Corp'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 ArcBest Corp assets, the company is considered highly leveraged. Understanding the
composition and structure of overall ArcBest Corp 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 ArcBest Total Debt
ArcBest Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ArcBest Corp 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 ArcBest Corp balance sheet include debt obligations and money owed to different ArcBest Corp vendors, workers, and loan providers. Below is the chart of ArcBest main long-term debt accounts currently reported on its balance sheet.
You can use ArcBest Corp
financial leverage analysis tool to get a better grip on understanding its financial position
How important is ArcBest Corp's Liquidity
ArcBest Corp
financial leverage refers to using borrowed capital as a funding source to finance ArcBest Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ArcBest 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 ArcBest 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 ArcBest 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 ArcBest Corp's total debt and its cash.
Is ArcBest Corp valued fairly by the market?
The entity reported the previous year's revenue of 3.07
B. Net Income was 92.56
M with profit before overhead, payroll, taxes, and interest of 197.73
M.
Liabilities Breakdown
477.8 M
Current Liabilities
401.5 M
Long-Term Liabilities
| Total Liabilities | 879.29 Million |
| Current Liabilities | 477.82 Million |
| Long-Term Liabilities | 401.47 Million |
| Tax Liabilities | 69.6 Million |
Arcbest Corp has a good chance to finish above $60 in 2 months
Current Information Ratio is up to -0.09. Price may slip again.
As of the 2nd of August, Arcbest Corp shows the
risk adjusted performance of
(0.047247), and Mean Deviation of 2.57. Arcbest Corp
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen
technical drivers for Arcbest Corp, which can be compared to its rivals. Please confirm
Arcbest Corp mean deviation,
standard deviation,
treynor ratio, as well as the
relationship between the
downside deviation and
information ratio to decide if Arcbest Corp is priced correctly, providing market reflects its regular price of 59.11 per share. Given that Arcbest Corp has
jensen alpha of
(0.28), we suggest you to validate Arcbest Corp's prevailing market performance to make sure the company can sustain itself at a future point.
Whereas some firms in the trucking industry are either recovering or due for a correction, Arcbest Corp may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of August 2021, we see that Arcbest Corp follows the market closely. The company is
undervalued with
low probability of bankruptcy within the next 24 months. Our actual 90 days buy-sell recommendation on the company is
Hold.
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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 ArcBest Corp. Please refer to our
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