Commvault Story

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CVLT -- USA Stock  

USD 63.85  0.71  1.10%

Commvault Systems is scheduled to announce its earnings today. The next earnings report is expected on the 11th of May 2021. Commvault Systems Accounts Payable Turnover is comparatively stable at the moment as compared to the past year. Commvault Systems reported Accounts Payable Turnover of 483.07 in 2020. Accrued Expenses Turnover is likely to gain to 10.06 in 2021, whereas Average Assets are likely to drop slightly above 858.4 M in 2021. While some baby boomers are getting worried about technology space, it is reasonable to review Commvault Systems as an investment alternative. We will analyze why Commvault Systems investors may still consider a stake in the business.
Published over three weeks ago
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Is Commvault Systems (NASDAQ:CVLT) outlook still optimistic based on the newest debt level?
The company currently holds 20.14 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest Commvault Systems is not taking enough advantage from borrowing. Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Commvault Systems. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Commvault Systems financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Commvault Systems, including all of Commvault 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 Commvault Systems assets, the company is considered highly leveraged. Understanding the composition and structure of overall Commvault 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 Commvault Total Liabilities

Commvault Systems liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Commvault 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 Commvault Systems balance sheet include debt obligations and money owed to different Commvault Systems vendors, workers, and loan providers. Below is the chart of Commvault short long-term liabilities accounts currently reported on its balance sheet.
You can use Commvault Systems financial leverage analysis tool to get a better grip on understanding its financial position

How important is Commvault Systems's Liquidity

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

Another angle On Commvault Systems

Commvault Systems reported the previous year's revenue of 685.24 M. Net Loss for the year was (30.6 M) with profit before overhead, payroll, taxes, and interest of 553.81 M.

Asset Breakdown

411.2 M
Assets Non Current
142.1 M
Tax Assets
606.3 M
Current Assets
Total Assets888.63 Million
Current Assets606.3 Million
Assets Non Current411.19 Million
Goodwill142.07 Million
Tax Assets55.15 Million

Another setback for Commvault Systems private investors

Newest sortino ratio is at 0.17. Commvault Systems has relatively low volatility with skewness of -0.53 and kurtosis of 1.24. However, we advise all investors to independently investigate Commvault Systems to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Commvault Systems Investment

Whereas other entities under the software?application industry are still a bit expensive, Commvault Systems may offer a potential longer-term growth to private investors. To conclude, as of the 27th of January 2021, we believe that Commvault Systems is currently fairly valued with very low probability of bankruptcy in the next two years. Our primary 30 days 'Buy-vs-Sell' recommendation on the firm is Strong Buy.

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

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