By analyzing existing basic indicators between Credit Suisse and Amazon, 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 Amazon with a short position in Credit Suisse. 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. Credit Suisse has an asset utilization ratio of 2.24 percent. This connotes that the company is making $0.0224 for each dollar of assets. An increasing asset utilization means that Credit Suisse Group 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 Credit Suisse. 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 Credit Suisse, 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 Credit Suisse on a daily basis if you are holding a position in it. Credit Suisse is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Credit Suisse stock to be traded above the $1 level to remain listed. If Credit Suisse 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 Credit Suisse's Liquidity
Credit Suisse
financial leverage refers to using borrowed capital as a funding source to finance Credit Suisse Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Credit Suisse 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 Credit Suisse'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 Credit Suisse'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 Credit Suisse's total debt and its cash.
Another Deeper Perspective
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
Lets now check Credit Suisse revenue. Based on the latest financial disclosure, Credit Suisse Group reported 18.08
B of revenue. This is 61.29% higher than that of the Financial Services sector and significantly higher than that of the
Banks—Diversified industry. The revenue for all United States stocks is 91.63% lower than that of the firm. As for Amazon we see revenue of 485.9
B, which is much higher than that of the Banks—Diversified
| CS | 18.08 Billion | 3.59 |
| Sector | 0.0 | 0.0 |
| AMZN | 485.9 Billion | 96.41 |
Will Credit Suisse latest fall continue?
Latest coefficient of variation is at -600.99. Credit Suisse Group exhibits very low volatility with skewness of -0.69 and kurtosis of 1.41. However, we advise investors to further study Credit Suisse Group technical indicators to ensure that 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 Credit Suisse's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Credit Suisse'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.
Our Final Take On Credit Suisse
While some companies in the banks—diversified industry are either recovering or due for a correction, Credit may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 1st of October 2022, our actual 90 days buy-sell recommendation on the enterprise is
Cautious Hold. We believe Credit Suisse is
undervalued with
average chance of distress for the next two years.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka 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 Rifka Kats do not own shares of Credit Suisse Group. Please refer to our
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