Good Times Story

GTIM -- USA Stock

USD 2.90 0.06 2.03%

Macroaxis Story

As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to summarize Good Times Restaurants. We will analyze why Good Times investors may still consider a stake in the business. Here I will also expose some primary fundamental factors affecting Good Times' services, and outline how it will impact the outlook for investors this year.

Published over three weeks ago

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Good Times (NASDAQ:GTIM) continues to hike

The company reported the previous year's revenue of 109.86 M. Net Loss for the year was (13.92 M) with profit before overhead, payroll, taxes, and interest of 17.77 M. About 26.0% of the company shares are held by company insiders. The book value of Good Times was currently reported as 1.09. Good Times Restaurants recorded a loss per share of 1.11. The entity had not issued any dividends in recent years. The firm had 1:3 split on the 31st of December 2010.

How important is Good Times's Liquidity

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

How Good Times utilizes its cash?

To perform a cash flow analysis of Good Times, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Good Times is receiving and how much cash it distributes out in a given period. The Good Times cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Good Times Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 3.56 Million

Breaking down Good Times Indicators

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Good Times has an asset utilization ratio of 234.36 percent. This denotes that the company is making $2.34 for each dollar of assets. An increasing asset utilization means that Good Times Restaurants is more efficient with each dollar of assets it utilizes for everyday operations.

Good Times implied volatility may change after the hike

Good Times new jensen alpha upsurges over 0.89. Good Times Restaurants shows above-average downside volatility for the selected time horizon. We advise investors to inspect Good Times Restaurants further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Good Times future alpha.

Our Final Takeaway

While some firms under the restaurants industry are still a bit expensive, Good Times may offer a potential longer-term growth to stakeholders. While some stakeholders may not share our view we believe that the current risk-reward utility 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 Good Times.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test 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 Good Times Restaurants. Please refer to our Terms of Use for any information regarding our disclosure principles.

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