VirnetX Holding Return On Equity vs. Total Debt
| VHC Stock | USD 5.41 0.13 2.35% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.50) | Current Value (0.52) | Quarterly Volatility 2.87967284 |
For VirnetX Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VirnetX Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VirnetX Holding Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VirnetX Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VirnetX Holding Corp over time as well as its relative position and ranking within its peers.
VirnetX |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of VirnetX Holding. If investors know VirnetX will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about VirnetX Holding listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.32) | Revenue Per Share 0.002 | Quarterly Revenue Growth (0.50) | Return On Assets (0.23) | Return On Equity (0.35) |
The market value of VirnetX Holding Corp is measured differently than its book value, which is the value of VirnetX that is recorded on the company's balance sheet. Investors also form their own opinion of VirnetX Holding's value that differs from its market value or its book value, called intrinsic value, which is VirnetX Holding's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because VirnetX Holding's market value can be influenced by many factors that don't directly affect VirnetX Holding's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between VirnetX Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if VirnetX Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VirnetX Holding'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.
VirnetX Holding Corp Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining VirnetX Holding's current stock value. Our valuation model uses many indicators to compare VirnetX Holding value to that of its competitors to determine the firm's financial worth. VirnetX Holding Corp is rated fifth in return on equity category among its peers. It is rated below average in total debt category among its peers . At present, VirnetX Holding's Return On Equity is projected to increase slightly based on the last few years of reporting. 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 VirnetX Holding's earnings, one of the primary drivers of an investment's value.VirnetX Total Debt vs. Return On Equity
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.
VirnetX Holding |
| = | -0.35 |
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.
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.
VirnetX Holding |
| = | 4.4 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.
VirnetX Total Debt vs Competition
VirnetX Holding Corp is rated below average in total debt category among its peers. Total debt of Information Technology industry is at this time estimated at about 2.36 Billion. VirnetX Holding adds roughly 4.4 Million in total debt claiming only tiny portion of equities under Information Technology industry.
VirnetX Holding Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in VirnetX Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VirnetX Holding will eventually generate negative long term returns. The profitability progress is the general direction of VirnetX Holding's change in net profit over the period of time. It can combine multiple indicators of VirnetX Holding, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -12 K | -12.6 K | |
| Operating Income | -31.4 M | -29.9 M | |
| Income Before Tax | -27.9 M | -29.3 M | |
| Total Other Income Expense Net | 3.5 M | 3.3 M | |
| Net Loss | -27.9 M | -26.5 M | |
| Income Tax Expense | -79 K | -75 K | |
| Net Loss | -41.7 M | -39.6 M | |
| Net Loss | -45 M | -42.7 M | |
| Non Operating Income Net Other | 55.2 K | 52.4 K | |
| Interest Income | 3.9 M | 3.7 M | |
| Net Interest Income | 3.9 M | 3.7 M | |
| Change To Netincome | -2.4 M | -2.3 M | |
| Net Loss | (7.79) | (7.40) | |
| Income Quality | 0.89 | 1.09 | |
| Net Income Per E B T | 1.00 | 0.72 |
VirnetX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on VirnetX Holding. 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 VirnetX Holding 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 VirnetX Holding's important profitability drivers and their relationship over time.
Use VirnetX Holding 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 VirnetX Holding 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 VirnetX Holding will appreciate offsetting losses from the drop in the long position's value.VirnetX Holding Pair Trading
VirnetX Holding Corp Pair Trading Analysis
The ability to find closely correlated positions to VirnetX Holding could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VirnetX Holding 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 VirnetX Holding - 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 VirnetX Holding Corp to buy it.
The correlation of VirnetX Holding 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 VirnetX Holding moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VirnetX Holding Corp 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 VirnetX Holding 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 VirnetX Holding position
In addition to having VirnetX Holding 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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To fully project VirnetX Holding's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VirnetX Holding Corp 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 VirnetX Holding's income statement, its balance sheet, and the statement of cash flows.