Runway Growth Finance is performing exceptionally good at this time. It has a great probability to report excellent financial results in January. At this time, Runway Growth's Net Debt is fairly stable compared to the past year. Total Current Liabilities is likely to rise to about 28.8 M in 2024, whereas Total Assets are likely to drop slightly above 1 B in 2024. Key indicators impacting Runway Growth's financial strength include:
The essential information of the day-to-day investment outlook for Runway Growth includes many different criteria found on its balance sheet. An individual investor should monitor Runway Growth's cash flow, debt, and profitability to accurately make informed decisions on whether to invest in Runway Growth.
Please note, the imprecision that can be found in Runway Growth's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Runway Growth Finance. Check Runway Growth's Beneish M Score to see the likelihood of Runway Growth's management manipulating its earnings.
Runway Growth Stock Summary
Runway Growth competes with Barings BDC, OneMain Holdings, Navient Corp, Federal Agricultural, and Nelnet. Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It invests in senior secured loans between 10 million and 75 million. Runway Growth is traded on NASDAQ Exchange in the United States.
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket.
Cash flow analysis captures how much money flows into and out of Runway Growth Finance. It measures of how well Runway is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Runway Growth brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Runway had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Runway Growth has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
Comparative valuation techniques use various fundamental indicators to help in determining Runway Growth's current stock value. Our valuation model uses many indicators to compare Runway Growth value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Runway Growth competition to find correlations between indicators driving Runway Growth's intrinsic value. More Info.
Runway Growth Finance is rated below average in return on equity category among its peers. It is rated second in return on asset category among its peers reporting about 1.16 of Return On Asset per Return On Equity. At this time, Runway Growth's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Runway Growth's earnings, one of the primary drivers of an investment's value.
Runway Growth Finance Systematic Risk
Runway Growth's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Runway Growth volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was fourteen with a total number of output elements of fourty-seven. The Beta measures systematic risk based on how returns on Runway Growth Finance correlated with the market. If Beta is less than 0 Runway Growth generally moves in the opposite direction as compared to the market. If Runway Growth Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Runway Growth Finance is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Runway Growth is generally in the same direction as the market. If Beta > 1 Runway Growth moves generally in the same direction as, but more than the movement of the benchmark.
Today, most investors in Runway Growth Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Runway Growth's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Runway Growth growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of Runway Growth help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Runway Growth Finance. We use our internally-developed statistical techniques to arrive at the intrinsic value of Runway Growth Finance based on widely used predictive technical indicators. In general, we focus on analyzing Runway Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Runway Growth's daily price indicators and compare them against related drivers.
When running Runway Growth's price analysis, check to measure Runway Growth'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 Runway Growth is operating at the current time. Most of Runway Growth's value examination focuses on studying past and present price action to predict the probability of Runway Growth's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Runway Growth's price. Additionally, you may evaluate how the addition of Runway Growth to your portfolios can decrease your overall portfolio volatility.