The entity has 513.69
M in debt with debt to equity (D/E) ratio of 2.78, meaning that Circor International heavily relies on borrowing funds for operations.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Circor International has an asset utilization ratio of 114.96 percent. This connotes that the company is making $1.15 for each dollar of assets. An increasing asset utilization means that Circor International is more efficient with each dollar of assets it utilizes for everyday operations.
CIRCOR International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CIRCOR International, including all of CIRCOR International'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 CIRCOR International assets, the company is considered highly leveraged. Understanding the
composition and structure of overall CIRCOR International 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.
How important is CIRCOR International's Liquidity
CIRCOR International
financial leverage refers to using borrowed capital as a funding source to finance CIRCOR International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CIRCOR International 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 CIRCOR International'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 CIRCOR International'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 CIRCOR International's total debt and its cash.
Breaking down the case for CIRCOR International
The big decline in price over the last few months for Circor International could raise concerns from retail investors as the firm is trading at a share price of
16.14 on
92,100 in volume. The company executives failed to add value to investors and position the firm supply of money to exploit
market volatility in
June. However, diversifying your holdings with Circor International or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.1. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Circor International partners.
Asset Breakdown
773.1 M
Assets Non Current
| Total Assets | 1.3 Billion |
| Current Assets | 529.2 Million |
| Assets Non Current | 773.06 Million |
| Goodwill | 545.07 Million |
| Tax Assets | 719,550 |
Another setback for Circor International retail investors
Latest maximum drawdown is at 12.54. Circor International exhibits very low volatility with skewness of -0.02 and kurtosis of 0.3. However, we advise investors to further study Circor International technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Circor International'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 Circor International'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.
Circor International Implied Volatility
Circor International's implied volatility exposes the market's sentiment of Circor International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Circor International'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 Circor International stock will not fluctuate a lot when Circor International's options are near their expiration.
Our Bottom Line On Circor International
While many of the other players in the specialty industrial machinery industry are either recovering or due for a correction, Circor may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Circor nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Circor International.
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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 CIRCOR International. Please refer to our
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