Still holding on to T2 Biosystems (NASDAQ:TTOO) given latest volatility slide?
 | By Vlad Skutelnik | Macroaxis Story |
66% of stocks are less volatile than T2 Biosystems, and 68% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Since many greedy investors are excited about healthcare space, let's outline T2 Biosystems against its current volatility. We will evaluate if T2 Biosystems' current volatility will continue into March.
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Reviewed by Raphi Shpitalnik
T2 Biosystems currently holds 48.27 M in liabilities with Debt to Equity (D/E) ratio of 2.75, implying the company greatly relies on financing operations through barrowing. This firm has a current ratio of 4.87, suggesting that it is liquid enough and is able to pay its financial obligations when due. T2 Biosystems holds a performance score of 16 on a scale of zero to a hundred. The firm owns a Beta (Systematic Risk) of -1.3662, which indicates a somewhat significant risk relative to the market. Let's try to break down what T2 Biosystems's beta means in this case. As returns on the market increase, returns on owning T2 Biosystems are expected to decrease by larger amounts. On the other hand, during market turmoil, T2 Biosystems is expected to outperform it. Although it is essential to pay attention to T2 Biosystems existing price patterns, it is also good to be reasonable about what you can do with equity price patterns. Our way in which we are measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if T2 Biosystems expected return of 1.83 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use T2 Biosystems value at risk, and the relationship between the information ratio and kurtosis to analyze future returns on T2 Biosystems. Volatility is a rate at which the price of T2 Biosystms 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 T2 Biosystms may increase or decrease. In other words, similar to TTOO's beta indicator, it measures the risk of T2 Biosystms and helps estimate the fluctuations that may happen in a short period of time. So if prices of T2 Biosystms 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 T2 Biosystms's Liquidity
T2 Biosystms financial leverage refers to using borrowed capital as a funding source to finance T2 Biosystms ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. T2 Biosystms 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 T2 Biosystms' 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 T2 Biosystms' 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 T2 Biosystms's total debt and its cash.
T2 Biosystms Gross Profit
T2 Biosystms Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing T2 Biosystms 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 T2 Biosystms Gross Profit growth over the last 10 years. Please check T2 Biosystms' gross profit and other fundamental indicators for more details.
T2 Biosystms Volatility Drivers
T2 Biosystms unsystematic risk is unique to T2 Biosystms 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 T2 Biosystms you can also buy Genetic Technologies. You can also mitigate this risk by investing in the health care 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 T2 Biosystms 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 T2 Biosystms income statement and balance sheet. Here are more details about TTOO volatility.Click cells to compare fundamentals
A Deeper look at TTOO
The company reported the previous year's revenue of 13.41 M. Net Loss for the year was (50.93 M) with loss before overhead, payroll, taxes, and interest of (24.75 M).
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