Computer Task Group has 32.22
M in debt with debt to equity (D/E) ratio of 0.46, which is OK given its current industry classification. We provide trade advice to complement the prevailing
expert consensus on Computer Task Group. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Computer Task financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Computer Task, including all of Computer Task'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 Computer Task assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Computer Task 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 Computer Task's Liquidity
Computer Task
financial leverage refers to using borrowed capital as a funding source to finance Computer Task Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Computer Task 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 Computer Task'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 Computer Task'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 Computer Task's total debt and its cash.
Detailed Perspective On Computer Task
The entity reported the last year's revenue of 372.62
M. Total Income to common stockholders was 5.45
M with profit before taxes, overhead, and interest of 75.03
M.
Asset Breakdown
| Total Assets | 167.94 Million |
| Current Assets | 107.28 Million |
| Assets Non Current | 52.28 Million |
| Goodwill | 27.15 Million |
| Tax Assets | 702,000 |
Computer Task has a small chance to finish above $5.12 in 2 months
Latest Sortino Ratio is up to 0.09. Price may dip again. Computer Task Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.28. However, we do advice investors to further question Computer Task Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Take On Computer Task
Although some other firms in the information technology services industry are either recovering or due for a correction, Computer 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 buy nor exit any shares of Computer Task at this time. The Computer Task Group 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 Computer Task.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Computer Task Group. Please refer to our
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