Aytu BioScience Story

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It appears Aytu BioScience may not have a good chance to recover from the newest drop as its shares fell again. The firm's current daily volatility is 3.71 percent, with a beta of -0.08 and an alpha of -0.17 over DOW. As many millenniums are excited about the newest volatility, it is fair to review Aytu BioScience based on its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Will Aytu BioScience (NASDAQ:AYTU) newest volatility gain scare private investors?
Aytu BioScience currently holds about 62.26 M in cash with (24.08 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.52. Aytu BioScience currently holds 4.71 M in liabilities with Debt to Equity (D/E) ratio of 0.06, which may suggest the company is not taking enough advantage from borrowing. The entity has a current ratio of 1.94, which is within standard range for the sector.
Investing in Aytu BioScience, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Aytu BioScience along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Aytu BioScience's Liquidity

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

How Aytu BioScience utilizes its cash?

To perform a cash flow analysis of Aytu BioScience, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aytu BioScience is receiving and how much cash it distributes out in a given period. The Aytu BioScience cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Aytu BioScience Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Aytu BioScience reported Net Cash Flow from Operations of (28.37 Million) in 2019

Breaking down Aytu BioScience Indicators

Aytu BioScience secures Sharpe Ratio (or Efficiency) of -0.0249, which signifies that the company had -0.0249% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Aytu BioScience exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Aytu BioScience risk adjusted performance of (0.037167), and Mean Deviation of 2.75 to double-check the risk estimate we provide.
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Over 3 percent drop for Aytu BioScience. What does it mean for private investors?

The market risk adjusted performance is down to 2.24 as of today. Aytu BioScience exhibits very low volatility with skewness of 0.83 and kurtosis of 0.62. However, we advise investors to further study Aytu BioScience technical indicators to make sure all market info is available and is reliable.

The Bottom Line

Whereas other entities in the biotechnology industry are either recovering or due for a correction, Aytu BioScience may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor drop any shares of Aytu BioScience at this time. The Aytu BioScience risk-reward trade off is not appealing enough to do any trading. 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 Aytu BioScience.

About Contributor

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 Vlad Skutelnik do not own shares of Aytu BioScience. Please refer to our Terms of Use for any information regarding our disclosure principles.

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