Lithium Americas Corp Stock Debt To Equity
| LAC Stock | CAD 5.55 0.13 2.29% |
Lithium Americas Corp fundamentals help investors to digest information that contributes to Lithium Americas' financial success or failures. It also enables traders to predict the movement of Lithium Stock. The fundamental analysis module provides a way to measure Lithium Americas' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Lithium Americas stock.
| Last Reported | Projected for Next Year | ||
| Debt To Equity | 0.05 | 0.05 |
Lithium | Debt To Equity |
Lithium Americas Corp Company Debt To Equity Analysis
Lithium Americas' Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Current Lithium Americas Debt To Equity | 71.50 % |
Most of Lithium Americas' fundamental indicators, such as Debt To Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Lithium Americas Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Lithium Debt To Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Lithium Americas is extremely important. It helps to project a fair market value of Lithium Stock properly, considering its historical fundamentals such as Debt To Equity. Since Lithium Americas' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Lithium Americas' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Lithium Americas' interrelated accounts and indicators.
Click cells to compare fundamentals
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
| Competition |
Lithium Total Stockholder Equity
Total Stockholder Equity |
|
According to the company disclosure, Lithium Americas Corp has a Debt To Equity of 71%. This is 11.01% higher than that of the Metals & Mining sector and 11.21% higher than that of the Materials industry. The debt to equity for all Canada stocks is 46.82% lower than that of the firm.
Lithium Debt To Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Lithium Americas' direct or indirect competition against its Debt To Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Lithium Americas could also be used in its relative valuation, which is a method of valuing Lithium Americas by comparing valuation metrics of similar companies.Lithium Americas is currently under evaluation in debt to equity category among its peers.
Lithium Fundamentals
| Return On Equity | -0.0698 | |||
| Return On Asset | -0.0372 | |||
| Current Valuation | 737.03 M | |||
| Shares Outstanding | 218.38 M | |||
| Shares Owned By Insiders | 7.38 % | |||
| Shares Owned By Institutions | 26.62 % | |||
| Number Of Shares Shorted | 3 M | |||
| Price To Earning | 30.33 X | |||
| Price To Book | 1.30 X | |||
| Price To Sales | 242.38 X | |||
| EBITDA | (27.36 K) | |||
| Net Income | (3.93 M) | |||
| Cash And Equivalents | 36.23 M | |||
| Cash Per Share | 0.41 X | |||
| Total Debt | 3.11 M | |||
| Debt To Equity | 71.50 % | |||
| Current Ratio | 10.38 X | |||
| Book Value Per Share | 3.02 X | |||
| Cash Flow From Operations | (37.96 M) | |||
| Short Ratio | 1.96 X | |||
| Earnings Per Share | (0.16) X | |||
| Target Price | 13.5 | |||
| Beta | 1.58 | |||
| Market Capitalization | 1.28 B | |||
| Total Asset | 439.5 M | |||
| Retained Earnings | (264.36 M) | |||
| Working Capital | 181.32 M | |||
| Net Asset | 439.5 M |
About Lithium Americas Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Lithium Americas Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lithium Americas using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lithium Americas Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Lithium Americas
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 Lithium Americas 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 Lithium Americas will appreciate offsetting losses from the drop in the long position's value.Moving together with Lithium Stock
| 0.67 | AG | First Majestic Silver | PairCorr |
| 0.88 | IE | Ivanhoe Energy | PairCorr |
| 0.8 | FDY | Faraday Copper Corp | PairCorr |
Moving against Lithium Stock
| 0.54 | INFM | Infinico Metals Corp | PairCorr |
| 0.52 | PNC-B | Postmedia Network Canada | PairCorr |
| 0.33 | CG | Centerra Gold | PairCorr |
The ability to find closely correlated positions to Lithium Americas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lithium Americas 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 Lithium Americas - 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 Lithium Americas Corp to buy it.
The correlation of Lithium Americas 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 Lithium Americas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lithium Americas 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 Lithium Americas 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.Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lithium Americas Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.