Novonix Total Debt vs. Return On Asset
| NVNXF Stock | USD 0.43 0.04 10.26% |
For Novonix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Novonix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Novonix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Novonix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Novonix over time as well as its relative position and ranking within its peers.
Novonix |
Novonix Return On Asset vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Novonix's current stock value. Our valuation model uses many indicators to compare Novonix value to that of its competitors to determine the firm's financial worth. Novonix is regarded second in total debt category among its peers. It also is regarded second in return on asset 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 Novonix's earnings, one of the primary drivers of an investment's value.Novonix Total Debt vs. Competition
Novonix is regarded second in total debt category among its peers. Total debt of Electrical Equipment & Parts industry is now estimated at about 941.36 Million. Novonix holds roughly 52.15 Million in total debt claiming about 6% of equities under Electrical Equipment & Parts industry.
Novonix Return On Asset 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.
Novonix |
| = | 52.15 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Novonix |
| = | -0.12 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Novonix Return On Asset Comparison
Novonix is currently under evaluation in return on asset category among its peers.
Novonix Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Novonix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Novonix will eventually generate negative long term returns. The profitability progress is the general direction of Novonix's change in net profit over the period of time. It can combine multiple indicators of Novonix, 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.
Novonix Limited develops and supplies battery materials, equipment, and services to the lithium-ion battery market in North America. Novonix Limited was incorporated in 2012 and is based in Brisbane, Australia. Novonix is traded on OTC Exchange in the United States.
Novonix Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Novonix. 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 Novonix 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 Novonix's important profitability drivers and their relationship over time.
Use Novonix 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 Novonix 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 Novonix will appreciate offsetting losses from the drop in the long position's value.Novonix Pair Trading
Novonix Pair Trading Analysis
The ability to find closely correlated positions to Novonix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Novonix 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 Novonix - 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 Novonix to buy it.
The correlation of Novonix 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 Novonix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Novonix 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 Novonix 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 Novonix position
In addition to having Novonix 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 Medical Equipment Thematic Idea Now
Medical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Medical Equipment theme has 61 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 Medical Equipment Theme or any other thematic opportunities.
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Other Information on Investing in Novonix Pink Sheet
To fully project Novonix's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Novonix 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 Novonix's income statement, its balance sheet, and the statement of cash flows.