The company currently holds 479.04
M in liabilities with Debt to Equity (D/E) ratio of 0.34, 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. Simply Good has an asset utilization ratio of 127.39 percent. This denotes that the company is making $1.27 for each dollar of assets. An increasing asset utilization means that The Simply Good is more efficient with each dollar of assets it utilizes for everyday operations.
Simply Good financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Simply Good, including all of Simply Good'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 Simply Good assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Simply Good 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 Simply Total Liabilities
Simply Good Foods liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Simply Good Foods 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 Simply Good balance sheet include debt obligations and money owed to different Simply Good vendors, workers, and loan providers. Below is the chart of Simply short long-term liabilities accounts currently reported on its balance sheet.
You can use Simply Good Foods
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Simply Good's Liquidity
Simply Good
financial leverage refers to using borrowed capital as a funding source to finance Simply Good Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Simply Good 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 Simply Good'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 Simply Good'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 Simply Good's total debt and its cash.
Going after Simply Financials
Simply Good reported the previous year's revenue of 1.12
B. Net Income was 63.75
M with profit before overhead, payroll, taxes, and interest of 409.77
M.
Asset Breakdown
| Total Assets | 1.03 Billion |
| Current Assets | 385.84 Million |
| Goodwill | 4.69 Million |
Will Simply Good continue to go bonkers?
Treynor ratio is down to 0.17. It may denote a possible volatility pull down. The Simply Good currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.41. However, we advise investors to further question The Simply Good expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Simply Good's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Simply Good's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Simply Good Implied Volatility
Simply Good's implied volatility exposes the market's sentiment of The Simply Good stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Simply Good's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Simply Good stock will not fluctuate a lot when Simply Good's options are near their expiration.
Our Final Take On Simply Good
When is the right time to buy or sell The Simply Good? Buying stocks such as Simply Good isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some stakeholders may not share our view, we believe it may be a good time to increase your existing holdings in Simply. 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 Simply Good.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Simply Good Foods. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com