Should I hold on to my AzurRx (NASDAQ:AZRX) position?

The upcoming quarterly report is expected on the 15th of February 2021. The stock experiences an active upward rally. AzurRx BioPharma Shareholders Equity is fairly stable at the moment as compared to the past year. AzurRx BioPharma reported Shareholders Equity of 5.31 Million in 2020. Total Liabilities is likely to rise to about 4.1 M in 2021, whereas Average Assets are likely to drop slightly above 9.9 M in 2021. As many baby boomers are still indifferent towards healthcare space, it makes sense to break down AzurRx BioPharma as a unique choice for millenniums. We will evaluate why recent AzurRx BioPharma price moves suggest a bounce in February.
Published over a year ago
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Reviewed by Raphi Shpitalnik

This firm currently holds 105.62 K in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the company is not taking enough advantage from borrowing. The company has a current ratio of 4.3, suggesting that it is liquid enough and is able to pay its financial obligations when due.

How important is AzurRx BioPharma's Liquidity

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

A Deeper Perspective

The current price rise of AzurRx BioPharma could raise concerns from investors as the firm it trading at a share price of 1.87 on 156,335,895 in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.9. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the AzurRx BioPharma partners.

Liabilities Breakdown

3.7 M
Current Liabilities
1.2 M
Long-Term Liabilities
Total Liabilities4.06 Million
Current Liabilities3.67 Million
Long-Term Liabilities1.22 Million

Can AzurRx BioPharma build up on the current rise?

The mean deviation is down to 3.4 as of today. AzurRx BioPharma is displaying above-average volatility over the selected time horizon. Investors should scrutinize AzurRx BioPharma independently to ensure intended market timing strategies are aligned with expectations about AzurRx BioPharma volatility.

Our Final Take On AzurRx BioPharma

While other companies within the biotechnology industry are still a little expensive, even after the recent corrections, AzurRx BioPharma may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor exit any shares of AzurRx BioPharma at this time. The AzurRx BioPharma 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 AzurRx BioPharma.

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Editorial Staff

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 AzurRx BioPharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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