Thinking to trade Computer (NASDAQ:CTG) based on its current debt commitments?

Computer Task Group is scheduled to announce its earnings today. The next earnings report is expected on the 23rd of February 2021. The stock experiences an active upward rally. Computer Task Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 99,790. The current year Average Assets is expected to grow to about 164.7 M, whereas Invested Capital is forecasted to decline to about 83.1 M. While some of us are becoming more enthusiastic about technology space, let's digest Computer Task Group in greater detail to make a better estimate of its debt utilization. I will address a few possible reasons shareholders do not currently respect this stock.
Published over a year ago
View all stories for Computer Task | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

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

52.3 M
Assets Non Current
27.1 M
Goodwill
107.3 M
Current Assets
Total Assets167.94 Million
Current Assets107.28 Million
Assets Non Current52.28 Million
Goodwill27.15 Million
Tax Assets702,000

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.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

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 Vlad Skutelnik do not own shares of Computer Task Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com