| FRMEP Stock | | | USD 25.53 0.18 0.71% |
First Merchants financial indicator trend analysis is much more than just examining First Merchants latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether First Merchants is a good investment. Please check the relationship between First Merchants Net Tangible Assets and its Accounts Payable accounts. Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Merchants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in income.
To learn how to invest in First Stock, please use our
How to Invest in First Merchants guide.
Net Tangible Assets vs Accounts Payable
Net Tangible Assets vs Accounts Payable Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
First Merchants Net Tangible Assets account and
Accounts Payable. At this time, the significance of the direction appears to have strong relationship.
The correlation between First Merchants' Net Tangible Assets and Accounts Payable is 0.68. Overlapping area represents the amount of variation of Net Tangible Assets that can explain the historical movement of Accounts Payable in the same time period over historical financial statements of First Merchants, assuming nothing else is changed. The correlation between historical values of First Merchants' Net Tangible Assets and Accounts Payable is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Tangible Assets of First Merchants are associated (or correlated) with its Accounts Payable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Accounts Payable has no effect on the direction of Net Tangible Assets i.e., First Merchants' Net Tangible Assets and Accounts Payable go up and down completely randomly.
Correlation Coefficient | 0.68 |
| Relationship Direction | Positive |
| Relationship Strength | Significant |
Net Tangible Assets
The total assets of a company minus any intangible assets such as patents, copyrights, and goodwill; it represents the physical assets of a company.
Accounts Payable
An accounting item on the balance sheet that represents First Merchants obligation to pay off a short-term debt to its creditors. The accounts payable entry is usually reported under current liabilities. If accounts payable of First Merchants are not paid within the agreed terms, the payables are considered to be in default, which may trigger a penalty or interest payment, or the revocation of additional credit from the supplier. Accounts payable may also be considered a source of cash, since they represent funds being borrowed from suppliers. Given these cash flow considerations, suppliers have a natural inclination to push for shorter payment terms, while creditors want to lengthen the payment terms. The amount a company owes to suppliers or vendors for products or services received but not yet paid for. It represents the company's short-term liabilities.
Most indicators from First Merchants' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into First Merchants current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Merchants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in income.
To learn how to invest in First Stock, please use our
How to Invest in First Merchants guide.At this time, First Merchants'
Selling General Administrative is relatively stable compared to the past year. As of 11/26/2024,
Enterprise Value Over EBITDA is likely to grow to 13.57, while
Sales General And Administrative To Revenue is likely to drop 0.27.
First Merchants fundamental ratios Correlations
Click cells to compare fundamentals
First Merchants Account Relationship Matchups
High Positive Relationship
High Negative Relationship
First Merchants fundamental ratios Accounts
Pair Trading with First Merchants
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 First Merchants 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 First Merchants will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to First Merchants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Merchants 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 First Merchants - 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 First Merchants to buy it.
The correlation of First Merchants 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 First Merchants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Merchants 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 First Merchants 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.
Additional Tools for First Stock Analysis
When running First Merchants' price analysis, check to
measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to
predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.