| 2017 | 2018 | 2019 | 2020 (projected) | Interest Expense | 4.37 M | 5.54 M | 39.3 M | 42.4 M | Gross Profit | 480.45 M | 578.37 M | 766.79 M | 640.92 M |
Is Callaway Golf (NYSE:ELY) a good hedge for your existing portfolios?
 | By Vlad Skutelnik | Macroaxis Story |
21% of stocks are less volatile than Callaway, and above 98% of all equities are expected to generate higher returns over the next 60 days. As many old-fashioned traders are trying to avoid consumer cyclical space, it makes sense to break down Callaway Golf a little further and try to understand its current volatility patterns. What exactly are Callaway Golf shareholders getting in November? Callaway Golf's low volatility may still impact the value of the stock as we estimate it as currently undervalued. The real value, based on our analysis, is getting close to 21.58 per share.
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Reviewed by Rifka Kats
Callaway Golf has roughly 164.42 M in cash with 116.99 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.75.
How important is Callaway Golf's Liquidity
Callaway Golf financial leverage refers to using borrowed capital as a funding source to finance Callaway Golf ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Callaway Golf financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Callaway Golf's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Callaway Golf's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Callaway Golf's total debt and its cash.
An Additional Perspective On Callaway Golf
Callaway Golf reported the last year's revenue of 1.48 B. Reported Net Loss for the year was (136.96 M) with profit before taxes, overhead, and interest of 766.79 M.
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