Honest Net Invested Capital vs Short Term Investments Analysis

HNST Stock

USD 2.70 0.01 0.37%

Honest financial indicator trend analysis is much more than just examining Honest Company latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Honest Company is a good investment. Please check the relationship between Honest Net Invested Capital and its Short Term Investments accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honest Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.

Net Invested Capital vs Short Term Investments

Net Invested Capital vs Short Term Investments Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Honest Company Net Invested Capital account and Short Term Investments. At this time, the significance of the direction appears to have pay attention.

The correlation between Honest's Net Invested Capital and Short Term Investments is -0.86. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Short Term Investments in the same time period over historical financial statements of Honest Company, assuming nothing else is changed. The correlation between historical values of Honest's Net Invested Capital and Short Term Investments is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of Honest Company are associated (or correlated) with its Short Term Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Short Term Investments has no effect on the direction of Net Invested Capital i.e., Honest's Net Invested Capital and Short Term Investments go up and down completely randomly.

Correlation Coefficient

-0.86

Relationship Direction	Negative
Relationship Strength	Significant

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Net Invested Capital

The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.

Short Term Investments

Short Term Investments is an item under the current assets section of Honest balance sheet. It contains any investments Honest Company undertook that will expire in less than one year. These accounts contain financial instruments such as stocks or bonds that Honest Company can easily liquidate in the marketplace.

Most indicators from Honest's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Honest Company current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Honest Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.

At this time, Honest's Sales General And Administrative To Revenue is comparatively stable compared to the past year. Enterprise Value is likely to gain to about 477.2 M in 2024, whereas Tax Provision is likely to drop slightly above 100.3 K in 2024.

	2021	2022	2023	2024 (projected)
Interest Expense	1.8M	494K	269K	255.6K
Depreciation And Amortization	4.1M	2.8M	2.7M	3.5M

Interest Expense Depreciation And Amortization

Honest fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Other Liab	Net Tangible Assets	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Other Assets	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Total Equity	Common Stock Shares Outstanding	Short Term Investments	Non Current Liabilities Total	Capital Lease Obligations	Inventory	Other Current Assets
Total Assets		0.74	-0.31	-0.28	-0.15	0.52	-0.22	0.52	-0.67	0.12	0.57	0.49	0.11	0.56	-0.19	0.58	0.48	-0.37	0.82	-0.13	-0.83	0.44	0.24	0.74	-0.09	0.13
Short Long Term Debt Total	0.74		-0.61	-0.69	-0.73	0.86	-0.77	0.91	-0.79	0.71	0.93	-0.01	-0.52	0.92	-0.49	0.45	0.66	-0.77	0.94	-0.7	-0.33	0.84	0.78	1.0	-0.51	-0.4
Other Current Liab	-0.31	-0.61		0.97	0.76	-0.91	0.77	-0.86	0.38	-0.37	-0.82	0.4	0.25	-0.8	0.72	0.21	-0.96	0.86	-0.48	0.75	0.27	-0.93	-0.79	-0.61	0.97	0.83
Total Current Liabilities	-0.28	-0.69	0.97		0.82	-0.92	0.83	-0.9	0.43	-0.58	-0.86	0.53	0.47	-0.83	0.82	0.23	-0.9	0.85	-0.54	0.8	0.14	-0.97	-0.85	-0.69	0.95	0.85
Total Stockholder Equity	-0.15	-0.73	0.76	0.82		-0.88	1.0	-0.89	0.47	-0.74	-0.89	0.35	0.65	-0.9	0.44	-0.15	-0.67	0.91	-0.57	0.96	-0.2	-0.86	-1.0	-0.73	0.81	0.86
Other Liab	0.52	0.86	-0.91	-0.92	-0.88		-0.9	0.98	-0.64	0.55	0.98	-0.18	-0.38	0.97	-0.58	0.17	0.92	-0.96	0.73	-0.86	-0.28	0.97	0.92	0.86	-0.85	-0.74
Net Tangible Assets	-0.22	-0.77	0.77	0.83	1.0	-0.9		-0.91	0.52	-0.75	-0.91	0.32	0.65	-0.92	0.45	-0.19	-0.69	0.92	-0.62	0.96	-0.15	-0.88	-1.0	-0.77	0.79	0.83
Property Plant And Equipment Net	0.52	0.91	-0.86	-0.9	-0.89	0.98	-0.91		-0.71	0.67	0.98	-0.24	-0.51	0.98	-0.61	0.2	0.87	-0.95	0.76	-0.89	-0.22	0.97	0.93	0.91	-0.79	-0.7
Current Deferred Revenue	-0.67	-0.79	0.38	0.43	0.47	-0.64	0.52	-0.71		-0.47	-0.67	-0.14	0.32	-0.73	0.25	-0.52	-0.55	0.66	-0.61	0.6	0.37	-0.59	-0.53	-0.79	0.19	0.04
Net Debt	0.12	0.71	-0.37	-0.58	-0.74	0.55	-0.75	0.67	-0.47		0.67	-0.53	-0.97	0.64	-0.54	0.08	0.27	-0.53	0.59	-0.7	0.38	0.66	0.73	0.71	-0.42	-0.51
Retained Earnings	0.57	0.93	-0.82	-0.86	-0.89	0.98	-0.91	0.98	-0.67	0.67		-0.15	-0.5	0.99	-0.55	0.28	0.82	-0.92	0.84	-0.84	-0.24	0.95	0.93	0.93	-0.76	-0.68
Accounts Payable	0.49	-0.01	0.4	0.53	0.35	-0.18	0.32	-0.24	-0.14	-0.53	-0.15		0.64	-0.09	0.74	0.79	-0.21	0.17	0.15	0.36	-0.51	-0.4	-0.31	-0.01	0.52	0.56
Cash	0.11	-0.52	0.25	0.47	0.65	-0.38	0.65	-0.51	0.32	-0.97	-0.5	0.64		-0.47	0.49	0.06	-0.11	0.39	-0.39	0.62	-0.57	-0.52	-0.63	-0.52	0.34	0.47
Non Current Assets Total	0.56	0.92	-0.8	-0.83	-0.9	0.97	-0.92	0.98	-0.73	0.64	0.99	-0.09	-0.47		-0.47	0.35	0.82	-0.95	0.79	-0.89	-0.22	0.93	0.93	0.92	-0.73	-0.66
Non Currrent Assets Other	-0.19	-0.49	0.72	0.82	0.44	-0.58	0.45	-0.61	0.25	-0.54	-0.55	0.74	0.49	-0.47		0.55	-0.65	0.44	-0.39	0.43	0.14	-0.76	-0.47	-0.49	0.7	0.55
Other Assets	0.58	0.45	0.21	0.23	-0.15	0.17	-0.19	0.2	-0.52	0.08	0.28	0.79	0.06	0.35	0.55		-0.06	-0.21	0.51	-0.13	-0.25	-0.02	0.18	0.45	0.31	0.28
Cash And Short Term Investments	0.48	0.66	-0.96	-0.9	-0.67	0.92	-0.69	0.87	-0.55	0.27	0.82	-0.21	-0.11	0.82	-0.65	-0.06		-0.87	0.52	-0.71	-0.47	0.9	0.72	0.66	-0.86	-0.66
Net Receivables	-0.37	-0.77	0.86	0.85	0.91	-0.96	0.92	-0.95	0.66	-0.53	-0.92	0.17	0.39	-0.95	0.44	-0.21	-0.87		-0.58	0.94	0.13	-0.9	-0.94	-0.77	0.81	0.75
Good Will	0.82	0.94	-0.48	-0.54	-0.57	0.73	-0.62	0.76	-0.61	0.59	0.84	0.15	-0.39	0.79	-0.39	0.51	0.52	-0.58		-0.47	-0.42	0.7	0.63	0.94	-0.38	-0.29
Common Stock Total Equity	-0.13	-0.7	0.75	0.8	0.96	-0.86	0.96	-0.89	0.6	-0.7	-0.84	0.36	0.62	-0.89	0.43	-0.13	-0.71	0.94	-0.47		-0.18	-0.84	-0.96	-0.7	0.76	0.78
Common Stock Shares Outstanding	-0.83	-0.33	0.27	0.14	-0.2	-0.28	-0.15	-0.22	0.37	0.38	-0.24	-0.51	-0.57	-0.22	0.14	-0.25	-0.47	0.13	-0.42	-0.18		-0.2	0.11	-0.33	0.04	-0.26
Short Term Investments	0.44	0.84	-0.93	-0.97	-0.86	0.97	-0.88	0.97	-0.59	0.66	0.95	-0.4	-0.52	0.93	-0.76	-0.02	0.9	-0.9	0.7	-0.84	-0.2		0.9	0.84	-0.88	-0.77
Non Current Liabilities Total	0.24	0.78	-0.79	-0.85	-1.0	0.92	-1.0	0.93	-0.53	0.73	0.93	-0.31	-0.63	0.93	-0.47	0.18	0.72	-0.94	0.63	-0.96	0.11	0.9		0.78	-0.81	-0.84
Capital Lease Obligations	0.74	1.0	-0.61	-0.69	-0.73	0.86	-0.77	0.91	-0.79	0.71	0.93	-0.01	-0.52	0.92	-0.49	0.45	0.66	-0.77	0.94	-0.7	-0.33	0.84	0.78		-0.51	-0.4
Inventory	-0.09	-0.51	0.97	0.95	0.81	-0.85	0.79	-0.79	0.19	-0.42	-0.76	0.52	0.34	-0.73	0.7	0.31	-0.86	0.81	-0.38	0.76	0.04	-0.88	-0.81	-0.51		0.94
Other Current Assets	0.13	-0.4	0.83	0.85	0.86	-0.74	0.83	-0.7	0.04	-0.51	-0.68	0.56	0.47	-0.66	0.55	0.28	-0.66	0.75	-0.29	0.78	-0.26	-0.77	-0.84	-0.4	0.94

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Honest Account Relationship Matchups

Pair Trading with Honest

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Honest position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Honest will appreciate offsetting losses from the drop in the long position's value.

Moving together with Honest Stock

0.69

Estee Lauder Companies Fiscal Year End 16th of August 2024

Pair Corr

Moving against Honest Stock

0.68	YSG	Yatsen Holding	Pair Corr
0.62	UG	United Guardian	Pair Corr
0.49	KMB	Kimberly Clark Earnings Call Today	Pair Corr
0.48	CL	Colgate Palmolive Earnings Call Tomorrow	Pair Corr
0.48	UL	Unilever PLC ADR	Pair Corr

The ability to find closely correlated positions to Honest could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Honest when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Honest - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Honest Company to buy it.

The correlation of Honest is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Honest moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Honest Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Honest can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for Honest Stock Analysis

When running Honest's price analysis, check to measure Honest's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honest is operating at the current time. Most of Honest's value examination focuses on studying past and present price action to predict the probability of Honest's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honest's price. Additionally, you may evaluate how the addition of Honest to your portfolios can decrease your overall portfolio volatility.

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