Park City Story

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PCYG -- USA Stock  

USD 4.99  0.06  1.19%

Park City Group is scheduled to announce its earnings today. Park City Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 59.79 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 4.1 M, whereas Calculated Tax Rate is forecasted to decline to 2.98. As many of us are excited about technology space, it is fair to digest Park City Group as a unique alternative. We will discuss if it could be a much better year for Park City shareholders.
Published over three weeks ago
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Should I hold on to my Park City (NASDAQ:PCYG) position?
The company currently holds 6.8 M in liabilities with Debt to Equity (D/E) ratio of 0.16, which may suggest the firm is not taking enough advantage from borrowing. Park City Group has a current ratio of 2.9, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of 6.85 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 6.75 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.07.
Park City financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Park City, including all of Park City's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Park City assets, the company is considered highly leveraged. Understanding the composition and structure of overall Park City debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Park City Total Liabilities

Park City Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Park City Group has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Park City balance sheet include debt obligations and money owed to different Park City vendors, workers, and loan providers. Below is the chart of Park City short long-term liabilities accounts currently reported on its balance sheet.
You can use Park City Group financial leverage analysis tool to get a better grip on understanding its financial position

How important is Park City's Liquidity

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

Breaking down Park City Indicators

The entity reported the previous year's revenue of 18.93 M. Net Income was 709.3 K with profit before overhead, payroll, taxes, and interest of 15.34 M.

Liabilities Breakdown

7.1 M
Current Liabilities
Long-Term Liabilities
Total Liabilities8.04 Million
Current Liabilities7.12 Million
Long-Term Liabilities1.1 Million

Are Park City technical ratios showing a throwback?

Latest mean deviation is at 3.0. Park City Group exhibits very low volatility with skewness of -0.32 and kurtosis of 2.52. However, we advise investors to further study Park City Group technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

Although some other companies under the software?application industry are still a bit expensive, Park City may offer a potential longer-term growth to shareholders. While some shareholders 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 Park City.

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 Achuva Shats do not own shares of Park City Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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