By analyzing existing basic indicators between Netsol Tech and Salesforce, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Salesforce with a short position in Netsol Tech. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Netsol Tech has an asset utilization ratio of 56.65 percent. This signifies that the company is making $0.57 for each dollar of assets. An increasing asset utilization means that Netsol Tech is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as NetSol or OLB is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is NetSol Technologies's Liquidity
NetSol Technologies
financial leverage refers to using borrowed capital as a funding source to finance NetSol Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetSol Technologies 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 NetSol Technologies' 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 NetSol Technologies' 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 NetSol Technologies's total debt and its cash.
Correlation Between NetSol and OLB Group
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding NetSol Technologies together with similar or unrelated positions with a negative correlation. For example, you can also add OLB to your portfolio. If OLB is not perfectly correlated to NetSol Technologies it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When NetSol Technologies, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both NetSol Technologies and OLB in your portfolio? Please note if you are using this as a pair-trade strategy between NetSol Technologies and OLB, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between NTWK and OLB for more information.
Another Outlook On NetSol Technologies
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Netsol Tech revenue. Based on the latest financial disclosure, Netsol Tech reported 52.88
M of revenue. This is 98.7% lower than that of the Technology sector and significantly higher than that of the
Software—Application industry. The revenue for all United States stocks is 99.44% higher than that of Netsol Tech. As for Salesforce we see revenue of 21.25
B, which is much higher than that of the Software—Application
| NTWK | 52.88 Million | 0.25 |
| Sector | 0.0 | 0.0 |
| CRM | 21.25 Billion | 99.75 |
Are Netsol Tech technical ratios showing a recoup?
Netsol Tech recent kurtosis hikes over 7.45. Netsol Tech exhibits very low volatility with skewness of 1.85 and kurtosis of 7.45. However, we advise investors to further study Netsol Tech technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Netsol Tech's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Netsol Tech's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Takeaway
Although some firms under the software—application industry are still a bit expensive, Netsol Tech may offer a potential longer-term growth to traders. The inconsistency in the assessment between current Netsol valuation and our trade advice on Netsol Tech is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Netsol Tech.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of NetSol Technologies. Please refer to our
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