D S P currently holds 13.26
M in liabilities with Debt to Equity (D/E) ratio of 0.08, which may suggest the firm is not taking enough advantage from borrowing. The entity has a current ratio of 3.06, suggesting that it is liquid enough and is able to pay its financial obligations when due.
How important is DSP's Liquidity
DSP
financial leverage refers to using borrowed capital as a funding source to finance DSP Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DSP 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 DSP'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 DSP'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 DSP's total debt and its cash.
Going after DSP Financials
The firm reported the previous year's revenue of 114.48
M. Net Loss for the year was (6.79
M) with profit before overhead, payroll, taxes, and interest of 58.19
M.
Asset Breakdown
130.7 M
Assets Non Current
| Total Assets | 196.08 Million |
| Current Assets | 83.14 Million |
| Assets Non Current | 130.65 Million |
| Goodwill | 22.28 Million |
| Tax Assets | 7.44 Million |
Our take on today D S surge
Latest information ratio is at -0.17. D S P exhibits very low volatility with skewness of 0.02 and kurtosis of -0.37. However, we advise investors to further study D S P technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure D S's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact D S's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on D S
Although few other entities in the semiconductors industry are either recovering or due for a correction, D S may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 3rd of May 2021, we believe that at this point, D S is not too volatile with
very low odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our concluding 30 days 'Buy-vs-Sell' recommendation on the firm is
Cautious Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of DSP Group. Please refer to our
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