Western Forest Products Stock Current Ratio
| WEF Stock | CAD 0.45 0.02 4.26% |
Western Forest Products fundamentals help investors to digest information that contributes to Western Forest's financial success or failures. It also enables traders to predict the movement of Western Stock. The fundamental analysis module provides a way to measure Western Forest's 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 Western Forest stock.
| Last Reported | Projected for Next Year | ||
| Current Ratio | 2.77 | 1.80 |
Western | Current Ratio |
Western Forest Products Company Current Ratio Analysis
Western Forest's 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 Western Forest Current Ratio | 2.14 X |
Most of Western Forest's 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, Western Forest Products is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Western Current Ratio Driver Correlations
Understanding the fundamental principles of building solid financial models for Western Forest is extremely important. It helps to project a fair market value of Western Stock properly, considering its historical fundamentals such as Current Ratio. Since Western Forest's 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 Western Forest's 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 Western Forest's 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 |
Western Discontinued Operations
Discontinued Operations |
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In accordance with the recently published financial statements, Western Forest Products has a Current Ratio of 2.14 times. This is 44.13% lower than that of the Paper & Forest Products sector and 7.0% higher than that of the Materials industry. This indicator is about the same for all Canada stocks average (which is currently at 2.16).
Western Current Ratio Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Western Forest's 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 Western Forest could also be used in its relative valuation, which is a method of valuing Western Forest by comparing valuation metrics of similar companies.Western Forest is currently under evaluation in current ratio category among its peers.
Western Fundamentals
| Return On Equity | -0.0829 | ||||
| Return On Asset | -0.0428 | ||||
| Profit Margin | (0.04) % | ||||
| Operating Margin | (0.10) % | ||||
| Current Valuation | 246.44 M | ||||
| Shares Outstanding | 316.75 M | ||||
| Shares Owned By Insiders | 0.60 % | ||||
| Shares Owned By Institutions | 42.69 % | ||||
| Number Of Shares Shorted | 1.74 M | ||||
| Price To Earning | 21.40 X | ||||
| Price To Book | 0.26 X | ||||
| Price To Sales | 0.14 X | ||||
| Revenue | 1.02 B | ||||
| Gross Profit | 253.3 M | ||||
| EBITDA | (25.9 M) | ||||
| Net Income | (70.1 M) | ||||
| Cash And Equivalents | 15.8 M | ||||
| Total Debt | 104.6 M | ||||
| Debt To Equity | 0.30 % | ||||
| Current Ratio | 2.14 X | ||||
| Book Value Per Share | 1.75 X | ||||
| Cash Flow From Operations | (33.8 M) | ||||
| Short Ratio | 3.19 X | ||||
| Earnings Per Share | (0.14) X | ||||
| Price To Earnings To Growth | 0.73 X | ||||
| Target Price | 0.56 | ||||
| Beta | 1.86 | ||||
| Market Capitalization | 148.08 M | ||||
| Total Asset | 915.4 M | ||||
| Retained Earnings | 148.9 M | ||||
| Working Capital | 213.9 M | ||||
| Current Asset | 250.7 M | ||||
| Current Liabilities | 108.9 M | ||||
| Five Year Return | 4.95 % | ||||
| Net Asset | 915.4 M | ||||
| Last Dividend Paid | 0.013 |
About Western Forest Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Western Forest Products's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Western Forest using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Western Forest Products 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 Western Forest
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 Western Forest 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 Western Forest will appreciate offsetting losses from the drop in the long position's value.Moving together with Western Stock
The ability to find closely correlated positions to Western Forest could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Forest 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 Western Forest - 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 Western Forest Products to buy it.
The correlation of Western Forest 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 Western Forest moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Forest Products 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 Western Forest 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 Western Stock
Western Forest financial ratios help investors to determine whether Western 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 Western with respect to the benefits of owning Western Forest security.