Nextsource Materials Stock Current Ratio
| NEXT Stock | CAD 0.52 0.02 4.00% |
NextSource Materials fundamentals help investors to digest information that contributes to NextSource Materials' financial success or failures. It also enables traders to predict the movement of NextSource Stock. The fundamental analysis module provides a way to measure NextSource Materials' 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 NextSource Materials stock.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 1.30 | 1.23 |
NextSource | Current Ratio |
NextSource Materials Company Current Ratio Analysis
NextSource Materials' 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.
Current NextSource Materials Current Ratio | 1.48 X |
Most of NextSource Materials' fundamental indicators, such as Current Ratio, 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, NextSource Materials is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
NextSource Current Ratio Driver Correlations
Understanding the fundamental principles of building solid financial models for NextSource Materials is extremely important. It helps to project a fair market value of NextSource Stock properly, considering its historical fundamentals such as Current Ratio. Since NextSource Materials' 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 NextSource Materials' 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 NextSource Materials' interrelated accounts and indicators.
Click cells to compare fundamentals
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).
| Competition |
In accordance with the recently published financial statements, NextSource Materials has a Current Ratio of 1.48 times. This is 61.36% lower than that of the Metals & Mining sector and 62.63% lower than that of the Materials industry. The current ratio for all Canada stocks is 31.48% higher than that of the company.
NextSource Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses NextSource Materials' direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of NextSource Materials could also be used in its relative valuation, which is a method of valuing NextSource Materials by comparing valuation metrics of similar companies.NextSource Materials is currently under evaluation in current ratio category among its peers.
NextSource Materials Current Valuation Drivers
We derive many important indicators used in calculating different scores of NextSource Materials from analyzing NextSource Materials' financial statements. These drivers represent accounts that assess NextSource Materials' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of NextSource Materials' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 15.5M | 141.8M | 163.3M | 169.0M | 105.3M | 110.5M | |
| Enterprise Value | 15.3M | 119.4M | 153.9M | 173.6M | 115.7M | 121.5M |
NextSource Fundamentals
| Return On Equity | -0.23 | ||||
| Return On Asset | -0.0632 | ||||
| Current Valuation | 121.42 M | ||||
| Shares Outstanding | 183.55 M | ||||
| Shares Owned By Insiders | 49.06 % | ||||
| Shares Owned By Institutions | 0.01 % | ||||
| Number Of Shares Shorted | 147.81 K | ||||
| Price To Book | 1.40 X | ||||
| EBITDA | (4.58 M) | ||||
| Net Income | (11.68 M) | ||||
| Cash And Equivalents | 6.89 M | ||||
| Total Debt | 11.5 M | ||||
| Current Ratio | 1.48 X | ||||
| Book Value Per Share | 0.34 X | ||||
| Cash Flow From Operations | (7.05 M) | ||||
| Short Ratio | 1.59 X | ||||
| Earnings Per Share | (0.08) X | ||||
| Target Price | 2.45 | ||||
| Beta | 2.12 | ||||
| Market Capitalization | 100.95 M | ||||
| Total Asset | 52.98 M | ||||
| Retained Earnings | (142.45 M) | ||||
| Working Capital | 120.05 K | ||||
| Net Asset | 52.98 M |
About NextSource Materials Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze NextSource Materials's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NextSource Materials using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NextSource Materials 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 NextSource Materials
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 NextSource Materials 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 NextSource Materials will appreciate offsetting losses from the drop in the long position's value.Moving together with NextSource Stock
Moving against NextSource Stock
| 0.89 | RY | Royal Bank | PairCorr |
| 0.79 | FDY | Faraday Copper Corp | PairCorr |
| 0.78 | IE | Ivanhoe Energy | PairCorr |
| 0.78 | BOFA | Bank of America | PairCorr |
| 0.75 | RY-PJ | Royal Bank | PairCorr |
The ability to find closely correlated positions to NextSource Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NextSource Materials 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 NextSource Materials - 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 NextSource Materials to buy it.
The correlation of NextSource Materials 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 NextSource Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NextSource Materials 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 NextSource Materials 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.Other Information on Investing in NextSource Stock
NextSource Materials financial ratios help investors to determine whether NextSource Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in NextSource with respect to the benefits of owning NextSource Materials security.