EXFO Inc Story

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EXFO -- USA Stock  

USD 2.85  0.03  1.04%

EXFO Subordinate Voting is scheduled to announce its earnings today. The next earnings report is expected on the 5th of January 2021. EXFO Inc Invested Capital is quite stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 120.82 Million. Invested Capital Average is expected to rise to about 124.3 M this year, although the value of Average Assets will most likely fall to about 247.7 M. As many of us are excited about technology space, it is fair to outline EXFO Inc Subordinate as a unique alternative. Let's try to inspect if EXFO Inc shares are reasonably priced going into November.
Published over two weeks ago
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Will EXFO Inc (NASDAQ:EXFO) stockholders stop to drop in November?
EXFO Subordinate Voting currently holds 48.62 M in liabilities with Debt to Equity (D/E) ratio of 0.3, which may suggest EXFO Inc is not taking enough advantage from borrowing. The entity has a current ratio of 1.26, suggesting that it is not liquid enough and may have problems paying out its financial obligations when due.
EXFO Inc financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of EXFO Inc, including all of EXFO Inc'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 EXFO Inc assets, the company is considered highly leveraged. Understanding the composition and structure of overall EXFO Inc 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 EXFO Inc Total Debt

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

How important is EXFO Inc's Liquidity

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

Breaking down EXFO Inc Indicators

The firm reported the previous year's revenue of 265.19 M. Net Loss for the year was (6.13 M) with profit before overhead, payroll, taxes, and interest of 168.52 M.

Liabilities Breakdown

82.6 M
Current Liabilities
17.9 M
Long-Term Liabilities
Total Liabilities100.48 Million
Current Liabilities82.63 Million
Long-Term Liabilities17.85 Million
Tax Liabilities4.82 Million

Will EXFO Inc recuperate before November?

The downside deviation is down to 2.57 as of today. EXFO Inc Subordinate currently demonstrates below-verage downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.13. However, we do advice investors to further question EXFO Inc Subordinate expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On EXFO Inc

Whereas other entities in the communication equipment industry are either recovering or due for a correction, EXFO Inc 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 drop any shares of EXFO Inc at this time. The EXFO Inc Subordinate 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 EXFO Inc.

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 Raphi Shpitalnik do not own shares of EXFO Inc Subordinate. Please refer to our Terms of Use for any information regarding our disclosure principles.

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