ADX Energy Cash And Equivalents vs. Return On Equity

ADXRF Stock  USD 0.04  0.00  0.00%   
Based on the key profitability measurements obtained from ADX Energy's financial statements, ADX Energy may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess ADX Energy's ability to earn profits and add value for shareholders.
For ADX Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ADX Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ADX Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ADX Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ADX Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between ADX Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if ADX Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ADX Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ADX Energy Return On Equity vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ADX Energy's current stock value. Our valuation model uses many indicators to compare ADX Energy value to that of its competitors to determine the firm's financial worth.
ADX Energy is rated below average in cash and equivalents category among its peers. It is rated below average in return on equity category among its peers . 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 ADX Energy's earnings, one of the primary drivers of an investment's value.

ADX Return On Equity 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.

ADX Energy

Cash

 = 

Bank Deposits

+

Liquidities

 = 
2.56 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).
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

ADX Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.31
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

ADX Return On Equity Comparison

ADX Energy is currently under evaluation in return on equity category among its peers.

ADX Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ADX Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ADX Energy will eventually generate negative long term returns. The profitability progress is the general direction of ADX Energy's change in net profit over the period of time. It can combine multiple indicators of ADX Energy, 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.
ADX Energy Ltd engages in the production, appraisal, and exploration of oil and gas properties. ADX Energy Ltd was incorporated in 1983 and is headquartered in Claremont, Australia. Adx Energy is traded on OTC Exchange in the United States.

ADX Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ADX Energy. 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 ADX Energy 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 ADX Energy's important profitability drivers and their relationship over time.

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in ADX Energy without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your ADX Energy position

In addition to having ADX Energy 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.

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Exotic Funds
Exotic Funds Theme
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Exotic Funds Theme or any other thematic opportunities.
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Other Information on Investing in ADX Pink Sheet

To fully project ADX Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ADX Energy 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 ADX Energy's income statement, its balance sheet, and the statement of cash flows.
Potential ADX Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ADX Energy investors may work on each financial statement separately, they are all related. The changes in ADX Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ADX Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.