Abraxas Story

AXAS -- USA Stock

USD 3.87 0.46 10.62%

Macroaxis Story

The stock is currently experiencing an active upward rally. Abraxas Petroleum Total Assets Per Share are relatively stable at the moment as compared to the past year. Abraxas Petroleum reported last year Total Assets Per Share of 48.45. As of 02/06/2021, Quick Ratio is likely to grow to 0.0362, while Average Assets are likely to drop slightly above 401.4 M. As many passive investors are finally getting excited about energy space, Abraxas Petroleum could be a good starting point. I will address a few possible reasons retail investors do not currently respect this stock.

Published over two weeks ago

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Will Abraxas (NASDAQ:AXAS) continue to grow in March?

The company currently holds 204.44 M in liabilities with Debt to Equity (D/E) ratio of 3.25, implying the company greatly relies on financing operations through barrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Abraxas Petroleum has an asset utilization ratio of 21.87 percent. This connotes that the company is making $0.22 for each dollar of assets. An increasing asset utilization means that Abraxas Petroleum is more efficient with each dollar of assets it utilizes for everyday operations.

Abraxas Petro financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Abraxas Petro, including all of Abraxas Petro'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 Abraxas Petro assets, the company is considered highly leveraged. Understanding the composition and structure of overall Abraxas Petro 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 Abraxas Total Liabilities

Abraxas Petro Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Abraxas Petro 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 Abraxas Petro balance sheet include debt obligations and money owed to different Abraxas Petro vendors, workers, and loan providers. Below is the chart of Abraxas short long-term liabilities accounts currently reported on its balance sheet.

You can use Abraxas Petro Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Abraxas Petro's Liquidity

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

Details

Abraxas Petroleum reported the previous year's revenue of 58.59 M. Net Loss for the year was (183.7 M) with profit before overhead, payroll, taxes, and interest of 89.58 M.

Asset Breakdown

342.6 M

Assets Non Current

Current Assets

	Total Assets	373.62 Million
	Current Assets	31.02 Million
	Assets Non Current	342.6 Million

Our take on today Abraxas Petroleum spike

Abraxas Petroleum latest downside deviation advances over 5.85. Abraxas Petroleum is displaying above-average volatility over the selected time horizon. Investors should scrutinize Abraxas Petroleum independently to ensure intended market timing strategies are aligned with expectations about Abraxas Petroleum volatility.

Our Final Take On Abraxas Petroleum

While many of the other players within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Abraxas Petroleum may offer a potential longer-term growth to retail investors. To conclude, as of the 6th of February 2021, our primary 30 days buy-hold-sell advice on the enterprise is Hold. We believe Abraxas Petroleum is overvalued with below average chance of financial distress for the next two years.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva 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 Achuva Shats do not own shares of Abraxas Petro Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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