Citrix Story

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CTXS -- USA Stock  

USD 133.58  5.28  3.80%

Citrix Systems is scheduled to announce its earnings today. The next earnings report is expected on the 22nd of April 2021. Citrix Systems Long Term Debt to Equity is relatively stable at the moment as compared to the past year. Citrix Systems reported last year Long Term Debt to Equity of 0.80. As of 01/21/2021, Receivables Turnover is likely to grow to 5.29, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 842.3 M. Although many aggressive traders are getting into technology space, Citrix Systems may or may not be your first choice.
Published over a month ago
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What is February outlook for Citrix (NASDAQ:CTXS)?
The company currently holds 1.93 B in liabilities. Citrix Systems has a current ratio of 0.88, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Macroaxis provides advice on Citrix Systems to complement and cross-verify current analyst consensus on Citrix Systems. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Citrix Systems financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Citrix Systems, including all of Citrix Systems'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 Citrix Systems assets, the company is considered highly leveraged. Understanding the composition and structure of overall Citrix Systems 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.

Understanding Citrix Total Liabilities

Citrix Systems liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Citrix Systems has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Citrix Systems balance sheet include debt obligations and money owed to different Citrix Systems vendors, workers, and loan providers. Below is the chart of Citrix short long-term liabilities accounts currently reported on its balance sheet.
You can use Citrix Systems financial leverage analysis tool to get a better grip on understanding its financial position

How important is Citrix Systems's Liquidity

Citrix Systems financial leverage refers to using borrowed capital as a funding source to finance Citrix Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Citrix Systems 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. Please check the breakdown between Citrix Systems's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Citrix Systems, but it might be worth checking our own buy vs. sell analysis

Breaking down the case for Citrix Systems

The entity reported the previous year's revenue of 3.24 B. Net Income was 599.47 M with profit before overhead, payroll, taxes, and interest of 2.6 B.

Liabilities Breakdown

Tax Liabilities
2.1 B
Current Liabilities
1.7 B
Long-Term Liabilities
Total Liabilities3.87 Billion
Current Liabilities2.14 Billion
Long-Term Liabilities1.73 Billion
Tax Liabilities396.34 Million

Citrix Systems has a small chance to finish above $135 in 2 months

Latest market risk adjusted performance is at 0.19. Citrix Systems currently demonstrates below-verage downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of 0.02. However, we do advice investors to further question Citrix Systems expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

While many other companies in the software?application industry are either recovering or due for a correction, Citrix 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 take up nor quit any shares of Citrix Systems at this time. The Citrix Systems 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 Citrix Systems.

About Contributor

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 Achuva Shats do not own shares of Citrix Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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