By analyzing existing basic indicators between Cango Inc and Airbnb, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Airbnb with a short position in Cango Inc. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cango Inc has an asset utilization ratio of 459.57 percent. This indicates that the company is making $4.6 for each dollar of assets. An increasing asset utilization means that Cango Inc ADR is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Cango. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Cango, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
Watch out for price decline
Please consider monitoring Cango on a daily basis if you are holding a position in it. Cango is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 Cango stock to be traded above the $1 level to remain listed. If Cango 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 Cango's Liquidity
Cango
financial leverage refers to using borrowed capital as a funding source to finance Cango Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cango 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 Cango'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 Cango'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 Cango's total debt and its cash.
Cango Gross Profit
Cango Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cango 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 Cango Gross Profit growth over the last 10 years. Please check Cango's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Cango Inc revenue. Based on the latest financial disclosure, Cango Inc ADR reported 3.92
B of revenue. This is 65.03% lower than that of the Financial Services sector and 30.66% lower than that of the
Credit Services industry. The revenue for all United States stocks is 58.45% higher than that of Cango Inc. As for Airbnb Inc we see revenue of 5.99
B, which is 5.95% higher than that of the Credit Services
| Cango | 3.92 Billion |
| Sector | 5.65 Billion |
| Airbnb | 5.99 Billion |
How will Cango shareholders react to the next dip?
Cango Inc latest semi deviation ascents over 6.08. Cango Inc ADR is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cango Inc ADR independently to ensure intended market timing strategies are aligned with expectations about Cango Inc volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cango Inc's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cango Inc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Cango Inc Implied Volatility
Cango Inc's implied volatility exposes the market's sentiment of Cango Inc ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cango Inc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cango Inc stock will not fluctuate a lot when Cango Inc's options are near their expiration.
Our Conclusion on Cango Inc
Although some other firms in the credit services industry are either recovering or due for a correction, Cango may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 3rd of June 2022, our analysis shows that Cango Inc responds to the market. The firm is
undervalued and projects
low probability of financial unrest for the next 2 years. Our actual 90 days buy-or-sell advice on the firm is
Cautious Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Cango Inc. Please refer to our
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