The company currently holds 11.91
M in liabilities with Debt to Equity (D/E) ratio of 0.71, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AutoWeb has an asset utilization ratio of 154.31 percent. This suggests that the company is making $1.54 for each dollar of assets. An increasing asset utilization means that AutoWeb is more efficient with each dollar of assets it utilizes for everyday operations.
Autoweb financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Autoweb, including all of Autoweb'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 Autoweb assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Autoweb 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.
Watch out for price decline
Please consider monitoring Autoweb on a daily basis if you are holding a position in it. Autoweb is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Autoweb stock to be traded above the $1 level to remain listed. If Autoweb stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Autoweb's Liquidity
Autoweb
financial leverage refers to using borrowed capital as a funding source to finance Autoweb ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Autoweb 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 Autoweb'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 Autoweb'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 Autoweb's total debt and its cash.
Detailed Perspective On Autoweb
AutoWeb reported the previous year's revenue of 96.74
M. Net Loss for the year was (10.35
M) with profit before overhead, payroll, taxes, and interest of 22.57
M.
Asset Breakdown
| Total Assets | 68.89 Million |
| Current Assets | 39.87 Million |
| Assets Non Current | 14 Million |
| Goodwill | 7.29 Million |
| Tax Assets | 639,189 |
AutoWeb implied volatility may change after the rise
The potential upside is down to 20.69 as of today. AutoWeb is displaying above-average volatility over the selected time horizon. Investors should scrutinize AutoWeb independently to ensure intended market timing strategies are aligned with expectations about AutoWeb volatility.
Our Bottom Line On AutoWeb
Whereas many of the other players within the internet content & information industry are still a little expensive, even after the recent corrections, AutoWeb may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current AutoWeb valuation and our trade advice on AutoWeb is due to the recent market swings and your selection of investing horizon. 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 AutoWeb.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Autoweb. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com