Quotient Story

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QTNT -- USA Stock  

USD 5.14  0.39  8.21%

Quotient Limited is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 3rd of August 2020. Quotient PPandE Turnover is comparatively stable at the moment as compared to the past year. Quotient reported PPandE Turnover of 0.74 in 2019. Receivables Turnover is likely to grow to 9.16 in 2020, whereas Earnings before Tax are likely to drop (42 M) in 2020. While some of us are becoming more enthusiastic about healthcare space, let's review Quotient Limited in greater detail to make a better estimate of its debt utilization.
Published over a month ago
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Will newest Quotient (NASDAQ:QTNT) debt levels change before the next earnings call?
Quotient currently holds 198.11 M in liabilities. We provide trade recommendations to complement the recent expert consensus on Quotient Limited. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Quotient financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Quotient, including all of Quotient'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 Quotient assets, the company is considered highly leveraged. Understanding the composition and structure of overall Quotient 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 Quotient Total Liabilities

Quotient Limited liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Quotient Limited 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 Quotient balance sheet include debt obligations and money owed to different Quotient vendors, workers, and loan providers. Below is the chart of Quotient short long-term liabilities accounts currently reported on its balance sheet.
You can use Quotient Limited financial leverage analysis tool to get a better grip on understanding its financial position

How important is Quotient's Liquidity

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

Breaking down the case for Quotient

This firm reported the previous year's revenue of 32.66 M. Net Loss for the year was (102.77 M) with profit before overhead, payroll, taxes, and interest of 14.86 M.

Asset Breakdown

56.3 M
Assets Non Current
162.4 M
Current Assets
Total Assets244.34 Million
Current Assets162.35 Million
Assets Non Current56.34 Million
Goodwill1.14 Million

Another 3 percent reset for Quotient

Newest mean deviation is at 3.9. As of the 2nd of August, Quotient holds the coefficient of variation of (7,492), and Risk Adjusted Performance of (0.014763). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Quotient, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Quotient Limited, which can be compared to its competitors. Please check Quotient Limited variance and potential upside to decide if Quotient Limited is priced some-what accurately, providing market reflects its current price of 7.84 per share. Given that Quotient has jensen alpha of (0.007408), we recommend you to check out Quotient Limited's recent market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Quotient Investment

Whereas some other entities in the diagnostics & research industry are either recovering or due for a correction, Quotient may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of August 2020, we believe that Quotient is currently undervalued with average odds of financial distress in the next two years. However, our present 30 days buy-or-sell advice on the firm is Strong Sell.

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 Quotient Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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