Leader Steel Cash And Equivalents vs. Z Score
| 9881 Stock | 0.42 0.01 2.44% |
For Leader Steel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Leader Steel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Leader Steel Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Leader Steel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Leader Steel Holdings over time as well as its relative position and ranking within its peers.
Leader |
Leader Steel Holdings Z Score vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Leader Steel's current stock value. Our valuation model uses many indicators to compare Leader Steel value to that of its competitors to determine the firm's financial worth. Leader Steel Holdings is number one stock in cash and equivalents category among its peers. It also is number one stock in z score category among its peers . The ratio of Cash And Equivalents to Z Score for Leader Steel Holdings is about 162,518 . 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 Leader Steel's earnings, one of the primary drivers of an investment's value.Leader Z Score vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Leader Steel |
| = | 8.48 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Leader Steel |
| = | 52.2 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Leader Z Score Comparison
Leader Steel is currently under evaluation in z score category among its peers.
Leader Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Leader Steel. 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 Leader Steel 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 Leader Steel's important profitability drivers and their relationship over time.
Use Leader Steel 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 Leader Steel 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 Leader Steel will appreciate offsetting losses from the drop in the long position's value.Leader Steel Pair Trading
Leader Steel Holdings Pair Trading Analysis
The ability to find closely correlated positions to Leader Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Leader Steel 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 Leader Steel - 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 Leader Steel Holdings to buy it.
The correlation of Leader Steel 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 Leader Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Leader Steel Holdings 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 Leader Steel 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 Leader Steel position
In addition to having Leader Steel in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Leader Stock
To fully project Leader Steel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Leader Steel Holdings 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 Leader Steel's income statement, its balance sheet, and the statement of cash flows.