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Will Intuit (NASDAQ:INTU) newest volatility gain scare private investors?
 | By Rifka Kats | Macroaxis Story |
It appears Intuit will continue to recover much faster as its share price surged up 3.38% today. Intuit Inc's current daily volatility is 1.74 percent, with a beta of -0.2 and an alpha of 0.2 over DOW. As many millenniums are excited about macroaxis picks, it is only fair to review Intuit Inc. We will evaluate why we are still optimistic in anticipation of a recovery.
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Reviewed by Michael Smolkin
Intuit Inc currently holds roughly 3.97 B in cash with 2 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 15.23. This firm currently holds 663 M in liabilities with Debt to Equity (D/E) ratio of 0.14, which may suggest Intuit Inc is not taking enough advantage from borrowing. The company has a current ratio of 1.75, which is within standard range for the sector.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Intuit. Your research has to be compared to or analyzed against Intuit's peers to derive any actionable benefits. When done correctly, Intuit's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Intuit Inc.
Investing in Intuit, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Intuit along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Intuit's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Intuit's Liquidity
Intuit financial leverage refers to using borrowed capital as a funding source to finance Intuit Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Intuit 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 Intuit'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 Intuit'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 Intuit's total debt and its cash.
Intuit Gross Profit
Intuit Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Intuit previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Intuit Gross Profit growth over the last 10 years. Please check Intuit's gross profit and other fundamental indicators for more details.
Intuit Correlation with Peers
Investors in Intuit can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Intuit Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Intuit and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Intuit is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Intuit for more details
Detailed Perspective On Intuit
Intuit appears to be very steady, given 1 month investment horizon. Intuit Inc holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had 0.16% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Intuit Inc, which you can use to evaluate future volatility of the firm. Please utilize Intuit Market Risk Adjusted Performance of (0.81), downside deviation of 1.87, and Risk Adjusted Performance of 0.1462 to validate if our risk estimates are consistent with your expectations.
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