NEXTDC Total Debt vs. Current Ratio
| 2NX Stock | EUR 8.85 0.05 0.57% |
For NEXTDC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NEXTDC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NEXTDC LTD utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NEXTDC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NEXTDC LTD over time as well as its relative position and ranking within its peers.
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NEXTDC LTD Current Ratio vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NEXTDC's current stock value. Our valuation model uses many indicators to compare NEXTDC value to that of its competitors to determine the firm's financial worth. NEXTDC LTD is rated fifth in total debt category among its peers. It is rated second in current ratio category among its peers . The ratio of Total Debt to Current Ratio for NEXTDC LTD is about 25,089,286 . 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 NEXTDC's earnings, one of the primary drivers of an investment's value.NEXTDC Total Debt vs. Competition
NEXTDC LTD is rated fifth in total debt category among its peers. Total debt of Data Storage industry is presently estimated at about 4.12 Billion. NEXTDC holds roughly 224.8 Million in total debt claiming about 5% of equities under Data Storage industry.
NEXTDC Current Ratio vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
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| = | 224.8 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
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| = | 8.96 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
NEXTDC Current Ratio Comparison
NEXTDC is number one stock in current ratio category among its peers.
NEXTDC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NEXTDC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NEXTDC will eventually generate negative long term returns. The profitability progress is the general direction of NEXTDC's change in net profit over the period of time. It can combine multiple indicators of NEXTDC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
NEXTDC Limited provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia. The company was founded in 2010 and is headquartered in Brisbane, Australia. NEXTDC LTD operates under Data Storage classification in Germany and is traded on Frankfurt Stock Exchange.
NEXTDC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NEXTDC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NEXTDC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NEXTDC's important profitability drivers and their relationship over time.
Use NEXTDC in pair-trading
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 NEXTDC 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 NEXTDC will appreciate offsetting losses from the drop in the long position's value.NEXTDC Pair Trading
NEXTDC LTD Pair Trading Analysis
The ability to find closely correlated positions to NEXTDC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NEXTDC 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 NEXTDC - 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 NEXTDC LTD to buy it.
The correlation of NEXTDC 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 NEXTDC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NEXTDC LTD 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 NEXTDC 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.Use Investing Themes to Complement your NEXTDC position
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Other Information on Investing in NEXTDC Stock
To fully project NEXTDC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NEXTDC LTD at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include NEXTDC's income statement, its balance sheet, and the statement of cash flows.