By analyzing existing basic indicators between Golar LNG and Dynagas, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dynagas with a short position in Golar LNG. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Golar LNG has an asset utilization ratio of 13.11 percent. This suggests that the company is making $0.13 for each dollar of assets. An increasing asset utilization means that Golar LNG Partners is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Golar or Global is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Golar LNG's Liquidity
Golar LNG
financial leverage refers to using borrowed capital as a funding source to finance Golar LNG Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Golar LNG 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 Golar LNG'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 Golar LNG'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 Golar LNG's total debt and its cash.
Correlation Between Golar and Global E Online
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Golar LNG together with similar or unrelated positions with a negative correlation. For example, you can also add Global E to your portfolio. If Global E is not perfectly correlated to Golar LNG it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Golar LNG, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Golar LNG and Global E in your portfolio? Please note if you are using this as a pair-trade strategy between Golar LNG and Global E, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GMLP and GLBE for more information.
An Additional Perspective On Golar LNG Partners
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Golar LNG revenue. Based on the latest financial disclosure, Golar LNG Partners reported 294.31
M of revenue. This is 99.4% lower than that of the Energy sector and 97.49% lower than that of the
Oil & Gas Midstream industry. The revenue for all United States stocks is 96.88% higher than that of Golar LNG. As for Dynagas LNG we see revenue of 137.05
M, which is 98.83% lower than that of the Oil & Gas Midstream
| GMLP | 294.31 Million | 2.98 |
| Sector | 9.43 Billion | 95.63 |
| DLNG | 137.05 Million | 1.39 |
Will Golar LNG recent roll up continue?
Golar LNG recent kurtosis upswings over 2.82. Golar LNG Partners currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question Golar LNG Partners expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Conclusion on Golar LNG
Although some other companies within the oil & gas midstream industry are still a little expensive, even after the recent corrections, Golar LNG may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Golar nor exit your existing holdings in the Stock. It seems the expected volatility 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 Golar LNG.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Golar LNG Partners. Please refer to our
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