The company reports 2.82
B of total liabilities with total debt to equity ratio (D/E) of 0.5, which is normal for its line of buisiness.
One of the ways to look at asset utilization of Zillow is to check how much profit was generated for every dollar of assets it reports. Zillow Grp harnesses its resources almost 2.67 (%), securing $0.0267 for each dollar of resources held by the company. A positive asset utilization attests that the company is slightly more effective with each dollar of resources it maintains. Specifically, asset utilization of Zillow Grp shows how effective it operates for each dollar spent on its resources.
Zillow financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Zillow, including all of Zillow'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 Zillow assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Zillow 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 Zillow Total Liabilities
Zillow Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Zillow Group 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 Zillow balance sheet include debt obligations and money owed to different Zillow vendors, workers, and loan providers. Below is the chart of Zillow short long-term liabilities accounts currently reported on its balance sheet.
You can use Zillow Group
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Zillow's Liquidity
Zillow
financial leverage refers to using borrowed capital as a funding source to finance Zillow Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Zillow 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 Zillow'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 Zillow'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 Zillow's total debt and its cash.
What is driving Zillow Investor Appetite?
The big decline in price over the last few months for Zillow Grpmay raise some interest from shareholders as it is trading at a share price of
59.43 on
2,310,400 in trading volume. The company directors and management failed to add value to investors and positioning the company supply of money to exploit market volatility in
November. However, diversifying your holdings with Zillow Grp or any 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 4.67. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Zillow Grp partners.
Can Zillow Grp build up on the latest surge?
The standard deviation is down to 4.57 as of today. Zillow Grp exhibits very low volatility with skewness of -1.85 and kurtosis of 8.3. However, we advise investors to further study Zillow Grp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Zillow Grp'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 Zillow Grp'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.
Zillow Grp Implied Volatility
Zillow Grp's implied volatility exposes the market's sentiment of Zillow Grp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Zillow Grp'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 Zillow Grp stock will not fluctuate a lot when Zillow Grp's options are near their expiration.
Our Conclusion on Zillow Grp
Although many other companies within the internet content & information industry are still a little expensive, even after the recent corrections, Zillow Grp may offer a potential longer-term growth to shareholders. While some next week oriented shareholders may not share our view, we believe it may not be a good time to trade new shares of Zillow.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Zillow Group. Please refer to our
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