Recruit Story

RCRRF -- USA Stock

USD 50.62 0.28 0.55%

Macroaxis Story

RECRUIT HOLDINGS LTD is scheduled to announce its earnings today. As many investors are getting excited about industrials space, it is fair to digest RECRUIT HOLDINGS LTD as an investment option. We will check if the company can maintain a respectable level of debt while minimizing operating losses.

Published over a week ago

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Will latest RECRUIT HOLDINGS (OTC:RCRRF) debt levels change next week?

This firm has accumulated 1.6 B in total debt with debt to equity ratio (D/E) of 0.37, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RECRUIT HOLDINGS has an asset utilization ratio of 1.6 percent. This indicates that the company is making $0.016 for each dollar of assets. An increasing asset utilization means that RECRUIT HOLDINGS LTD is more efficient with each dollar of assets it utilizes for everyday operations.

Recruit Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Recruit Holdings, including all of Recruit Holdings'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 Recruit Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Recruit Holdings 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.

How important is Recruit Holdings's Liquidity

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

How Recruit utilizes its cash?

To perform a cash flow analysis of Recruit Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Recruit Holdings is receiving and how much cash it distributes out in a given period. The Recruit Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Detailed Outlook On Recruit Holdings

The modest gains experienced by current holders of RECRUIT HOLDINGS LTD created some momentum for shareholders as it was traded today as low as 48.3 and as high as 48.55 per share. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.33. The current volatility is consistent with the ongoing market swings in January 2021 as well as with RECRUIT HOLDINGS LTD unsystematic, company-specific events.

RECRUIT HOLDINGS is likely to close below $48 next week

RECRUIT HOLDINGS latest standard deviation ascents over 2.6. RECRUIT HOLDINGS LTD currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.22. However, we do advice investors to further question RECRUIT HOLDINGS LTD expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on RECRUIT HOLDINGS

Although other companies in the staffing & employment services industry are either recovering or due for a correction, RECRUIT HOLDINGS may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 15th of February 2021, we believe that at this point, RECRUIT HOLDINGS is very steady with very small probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. However, our overall 30 days buy-or-sell advice on the firm is Strong Sell.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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 Recruit Holdings CoLtd. Please refer to our Terms of Use for any information regarding our disclosure principles.

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