The company has 762.41
M in debt. Highpoint Resources Corp has a current ratio of 1.05, demonstrating that it is not liquid enough and may have problems paying out its financial commitments when the payables are due.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Highpoint Resources has an asset utilization ratio of 14.01 percent. This connotes that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Highpoint Resources Corp is more efficient with each dollar of assets it utilizes for everyday operations.
How important is HighPoint Resources's Liquidity
HighPoint Resources
financial leverage refers to using borrowed capital as a funding source to finance HighPoint Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HighPoint Resources 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 HighPoint Resources' 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 HighPoint Resources' 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 HighPoint Resources's total debt and its cash.
Going after HighPoint Financials
The big decline in price over the last few months for Highpoint Resourcesmay raise some interest from retail investors. The stock closed today at a share price of
9.19 on
446,680 in trading volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in
February. However, diversifying your holdings with Highpoint Resources Corp or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.53. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Highpoint Resources Corp partners.
Liabilities Breakdown
736.2 M
Long-Term Liabilities
| Total Liabilities | 792.18 Million |
| Current Liabilities | 99.56 Million |
| Long-Term Liabilities | 736.2 Million |
| Tax Liabilities | 24.4 Million |
Highpoint Resources implied volatility may change after the spike
The coefficient of variation is down to -1917.06 as of today. Highpoint Resources Corp exhibits very low volatility with skewness of 0.52 and kurtosis of 1.75. However, we advise investors to further study Highpoint Resources Corp 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 Highpoint Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Highpoint Resources' 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 Conclusion on Highpoint Resources
While other entities in the oil & gas e&p industry are either recovering or due for a correction, Highpoint Resources may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 5th of March 2021, our analysis shows that Highpoint Resources responds to the market. The enterprise is
overvalued and projects
average odds of financial distress for the next 2 years. Our overall 30 days Buy-Hold-Sell recommendation on the enterprise is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of HighPoint Resources. Please refer to our
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