African Discovery Operating Margin vs. Current Ratio

AFDG Stock  USD 0  0  33.33%   
Based on the key profitability measurements obtained from African Discovery's financial statements, African Discovery Group 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 African Discovery's ability to earn profits and add value for shareholders.
For African Discovery profitability analysis, we use financial ratios and fundamental drivers that measure the ability of African Discovery to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well African Discovery Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between African Discovery's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of African Discovery Group over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Please note, there is a significant difference between African Discovery's value and its price as these two are different measures arrived at by different means. Investors typically determine if African Discovery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, African Discovery'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.

African Discovery Current Ratio vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining African Discovery's current stock value. Our valuation model uses many indicators to compare African Discovery value to that of its competitors to determine the firm's financial worth.
African Discovery Group is rated second in operating margin category among its peers. It also is rated second in current ratio category among its peers fabricating about  0.97  of Current Ratio per Operating Margin. The ratio of Operating Margin to Current Ratio for African Discovery Group is roughly  1.03 . 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 African Discovery's earnings, one of the primary drivers of an investment's value.

African Current Ratio vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

African Discovery

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.24 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

African Discovery

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
0.23 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).

African Current Ratio Comparison

African Discovery is currently under evaluation in current ratio category among its peers.

African Discovery Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in African Discovery, profitability is also one of the essential criteria for including it into their portfolios because, without profit, African Discovery will eventually generate negative long term returns. The profitability progress is the general direction of African Discovery's change in net profit over the period of time. It can combine multiple indicators of African Discovery, 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.
African Discovery Group, Inc., through its subsidiaries, provides consulting services in Africa. African Discovery Group, Inc. is based in New York, New York. African Discovery operates under Rental Leasing Services classification in the United States and is traded on OTC Exchange. It employs 38 people.

African Profitability Driver Comparison

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

Use African Discovery 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 African Discovery 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 African Discovery will appreciate offsetting losses from the drop in the long position's value.

African Discovery Pair Trading

African Discovery Group Pair Trading Analysis

The ability to find closely correlated positions to African Discovery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace African Discovery 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 African Discovery - 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 African Discovery Group to buy it.
The correlation of African Discovery 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 African Discovery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if African Discovery 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 African Discovery 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 CorrelationCorrelation Matching

Use Investing Themes to Complement your African Discovery position

In addition to having African Discovery 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?

Run Shipping Containers Thematic Idea Now

Shipping Containers
Shipping Containers Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 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 Shipping Containers Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in African Pink Sheet

To fully project African Discovery's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of African Discovery 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 African Discovery's income statement, its balance sheet, and the statement of cash flows.
Potential African Discovery investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although African Discovery investors may work on each financial statement separately, they are all related. The changes in African Discovery's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on African Discovery'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.