SMITH Story

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DITHF -- USA Stock  

USD 3.61  0.16  4.64%

SMITH is scheduled to announce its earnings tomorrow. As many millenniums are trying to avoid smith space, it makes sense to digest SMITH a little further and try to understand its current market patterns. Here we also measure the ability of SMITH to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over three weeks ago
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What is October outlook for SMITH (OTC:DITHF)?
This firm has accumulated 2.84 B in total debt with debt to equity ratio (D/E) of 0.82, which is about average as compared to similar companies. The company has a current ratio of 0.86, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due.
SMITH financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of SMITH, including all of SMITH'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 SMITH assets, the company is considered highly leveraged. Understanding the composition and structure of overall SMITH 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 SMITH's Liquidity

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

How SMITH utilizes its cash?

To perform a cash flow analysis of SMITH, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash SMITH is receiving and how much cash it distributes out in a given period. The SMITH cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another Deeper Perspective

The latest SMITH price dip could raise concerns from shareholders as the company closed today at a share price of 3.45 on slow start in volume. The company management teams were unable to exploit market volatilities in August. However, diversifying your overall positions with SMITH can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.38. The current volatility is consistent with the ongoing market swings in August 2020 as well as with SMITH unsystematic, company-specific events.

Some SMITH technical indicators suggest bounce back

The standard deviation is down to 2.32 as of today. SMITH exhibits very low volatility with skewness of -4.77 and kurtosis of 29.58. However, we advise investors to further study SMITH technical indicators to make sure all market info is available and is reliable.

Our Final Perspective on SMITH

Although some firms under its industry are still a bit expensive, SMITH may offer a potential longer-term growth to shareholders. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of SMITH or increase your existing holdings in the OTC Stock as it seems the potential growth has not yet been fully factored into the current price. 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 SMITH.

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 SMITH. Please refer to our Terms of Use for any information regarding our disclosure principles.

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