| 2010 | 2017 | 2022 (projected) | Receivables | 3.63 B | 5.64 B | 4.5 B | Inventories | 2.04 B | 6.34 B | 4.23 B |
Breaking up Qualcomm Incorporated (USA Stocks:QCOM) risk factors?
 | By Rifka Kats | Macroaxis Story |
25% of stocks are less volatile than Qualcomm, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Although many risk-takers are getting more into semiconductors & semiconductor equipment space, some of us are not very happy with Qualcomm Incorporated's current volatility. We will summarize if the expected returns on Qualcomm Incorporated will justify its current volatility. Qualcomm Incorporated's low volatility may still impact the value of the stock as we estimate it as currently undervalued. The real value, based on our analysis, is getting close to 158.98 per share.
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Reviewed by Ellen Johnson
Qualcomm Incorporated currently holds 13.54 B in liabilities with Debt to Equity (D/E) ratio of 0.9, which is about average as compared to similar companies. The entity has a current ratio of 1.72, which is within standard range for the sector. Debt can assist Qualcomm Incorporated until it has trouble settling it off, either with new capital or with free cash flow. So, Qualcomm Incorporated's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Qualcomm Incorporated sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Qualcomm to invest in growth at high rates of return. When we think about Qualcomm Incorporated's use of debt, we should always consider it together with cash and equity.Volatility is a rate at which the price of Qualcomm Incorporated or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Qualcomm Incorporated may increase or decrease. In other words, similar to Qualcomm's beta indicator, it measures the risk of Qualcomm Incorporated and helps estimate the fluctuations that may happen in a short period of time. So if prices of Qualcomm Incorporated fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Qualcomm Incorporated's Liquidity
Qualcomm Incorporated financial leverage refers to using borrowed capital as a funding source to finance Qualcomm Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Qualcomm Incorporated 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 Qualcomm Incorporated'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 Qualcomm Incorporated'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 Qualcomm Incorporated's total debt and its cash.
Qualcomm Incorporated Gross Profit
Qualcomm Incorporated Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Qualcomm Incorporated 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 Qualcomm Incorporated Gross Profit growth over the last 10 years. Please check Qualcomm Incorporated's gross profit and other fundamental indicators for more details.
Qualcomm Incorporated Volatility Drivers
Qualcomm Incorporated unsystematic risk is unique to Qualcomm Incorporated and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Qualcomm Incorporated you can also buy Micron Technology. You can also mitigate this risk by investing in the information technology sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Qualcomm Incorporated important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Qualcomm Incorporated income statement and balance sheet. Here are more details about Qualcomm volatility.Click cells to compare fundamentals
A Deeper look at Qualcomm
The firm reported the previous year's revenue of 44.2 B. Net Income was 12.99 B with profit before overhead, payroll, taxes, and interest of 25.57 B.
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