| 2018 | 2019 | 2020 | 2021 (projected) | Book Value per Share | 9.04 | 9.78 | 11.25 | 12.17 | Asset Turnover | 0.88 | 0.77 | 0.69 | 0.78 |
Should you pick up more of Alliance (NASDAQ:ARLP) based on recent volatility?
 | By Ellen Johnson | Macroaxis Story |
32% of stocks are less volatile than Alliance, and 91% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. Since many greedy investors are excited about energy space, let's recap Alliance Resource against its current volatility. We are going to focus on if the current expected returns justify Alliance Resource's volatility.
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Reviewed by Raphi Shpitalnik
Alliance Resource Partners currently holds roughly 34.13 M in cash with 398.26 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.27. Volatility is a rate at which the price of Alliance Resource 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 Alliance Resource may increase or decrease. In other words, similar to Alliance's beta indicator, it measures the risk of Alliance Resource and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alliance Resource 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 Alliance Resource's Liquidity
Alliance Resource financial leverage refers to using borrowed capital as a funding source to finance Alliance Resource Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alliance Resource 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 Alliance Resource'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 Alliance Resource'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 Alliance Resource's total debt and its cash.
Alliance Resource Gross Profit
Alliance Resource Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Alliance Resource 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 Alliance Resource Gross Profit growth over the last 10 years. Please check Alliance Resource's gross profit and other fundamental indicators for more details.
Alliance Resource Volatility Drivers
Alliance Resource unsystematic risk is unique to Alliance Resource and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Alliance Resource you can also buy Indo Tambangraya Megah. You can also mitigate this risk by investing in the energy sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Alliance Resource important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Alliance Resource income statement and balance sheet. Here are more details about Alliance volatility.Click cells to compare fundamentals
An Additional Perspective On Alliance Resource
The entity reported the previous year's revenue of 1.41 B. Net Loss for the year was (138.89 M) with profit before overhead, payroll, taxes, and interest of 656.76 M.
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