Laix Inc Story

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As many investors are getting excited about consumer defensive space, LAIX and Skillful Craftsman may be going in opposite directions. We are going to inspect some of the competitive aspects of both LAIX and Skillful.
Published over three weeks ago
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What is our outlook on LAIX (NYSE:LAIX) and Skillful (NASDAQ:EDTK)?
By analyzing existing basic indicators between LAIX and Skillful, 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 Skillful with a short position in LAIX. 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. LAIX has an asset utilization ratio of 21.34 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that LAIX Inc is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Laix Inc's Liquidity

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

How Laix Inc utilizes its cash?

To perform a cash flow analysis of Laix Inc, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Laix Inc is receiving and how much cash it distributes out in a given period. The Laix Inc cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Laix Inc Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Laix Inc reported Net Cash Flow from Operations of (133.35 Million) in 2020

Breaking down Laix Inc Indicators

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

Let me now analyze LAIX revenue. Based on the latest financial disclosure, LAIX Inc reported 74.3 M of revenue. This is 99.5% lower than that of the Consumer Defensive sector and 90.72% lower than that of the Education & Training Services industry. The revenue for all United States stocks is 99.21% higher than that of LAIX. As for Skillful Craftsman we see revenue of 26.97 M, which is 96.63% lower than that of the Education & Training Services

Sector
800.8 M
LAIX74.3 Million8.24
Sector800.78 Million88.77
EDTK26.97 Million2.99

Are LAIX technical ratios showing a throwback?

The total risk alpha is down to 0.5 as of today. LAIX Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize LAIX Inc independently to ensure intended market timing strategies are aligned with expectations about LAIX volatility.

Our Conclusion on LAIX

While some companies under the education & training services industry are still a bit expensive, LAIX may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of LAIX as the current risk-reward utility is not appealing enough. 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 LAIX.

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 Laix Inc ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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