This firm currently holds 33.49
M in liabilities with Debt to Equity (D/E) ratio of 1.53, which is about average as compared to similar companies.
We provide advice to complement the current
expert consensus on Staffing 360. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Staffing 360 financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Staffing 360, including all of Staffing 360'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 Staffing 360 assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Staffing 360 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.
Watch out for price decline
Please consider monitoring Staffing 360 on a daily basis if you are holding a position in it. Staffing 360 is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Staffing 360 stock to be traded above the $1 level to remain listed. If Staffing 360 stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Understanding Staffing Total Liabilities
Staffing 360 Solutions liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Staffing 360 Solutions 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 Staffing 360 balance sheet include debt obligations and money owed to different Staffing 360 vendors, workers, and loan providers. Below is the chart of Staffing short long-term liabilities accounts currently reported on its balance sheet.
You can use Staffing 360 Solutions
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Staffing 360's Liquidity
Staffing 360
financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360'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 Staffing 360'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 Staffing 360's total debt and its cash.
Breaking down Staffing 360 Indicators
The big decline in price over the last few months for Staffing 360 created some momentum for shareholders as it was traded today as low as
4.25 and as high as
4.61 per share. The company executives failed to add value to investors and position the company supply of money to exploit
market volatility in
June. However, diversifying your holdings with Staffing 360 Solutions or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.16. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Staffing 360 Solutions partners.
Asset Breakdown
| Total Assets | 253.9 Million |
| Current Assets | 130.42 Million |
| Assets Non Current | 22.74 Million |
| Goodwill | 19.39 Million |
Our Staffing analysis indicates possible reversion in August
Latest treynor ratio is at -0.81. Staffing 360 Solutions is displaying above-average volatility over the selected time horizon. Investors should scrutinize Staffing 360 Solutions independently to ensure intended market timing strategies are aligned with expectations about Staffing 360 volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Staffing 360'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 Staffing 360'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.
Staffing 360 Implied Volatility
Staffing 360's implied volatility exposes the market's sentiment of Staffing 360 Solutions stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Staffing 360'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 Staffing 360 stock will not fluctuate a lot when Staffing 360's options are near their expiration.
Our Final Takeaway
Although many of the other players in the staffing & employment services industry are either recovering or due for a correction, Staffing 360 may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 7th of July 2022, we believe Staffing 360 is currently
overvalued. It follows the market closely and projects
low chance of bankruptcy in the next two years. Our current 90 days recommendation on the firm is
Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste 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 Staffing 360 Solutions. Please refer to our
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