AmTrust Financial Return On Equity vs. Current Ratio
| AFSIN Stock | USD 13.40 0.60 4.29% |
For AmTrust Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AmTrust Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AmTrust Financial Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AmTrust Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AmTrust Financial Services over time as well as its relative position and ranking within its peers.
AmTrust |
AmTrust Financial Current Ratio vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AmTrust Financial's current stock value. Our valuation model uses many indicators to compare AmTrust Financial value to that of its competitors to determine the firm's financial worth. AmTrust Financial Services is rated below average in return on equity category among its peers. It also is rated below average in current ratio category among its peers fabricating about 22.91 of Current Ratio per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value AmTrust Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AmTrust Financial's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.AmTrust Current Ratio vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
AmTrust Financial |
| = | 0.0707 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
AmTrust Financial |
| = | 1.62 X |
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).
AmTrust Current Ratio Comparison
AmTrust Financial is currently under evaluation in current ratio category among its peers.
AmTrust Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AmTrust Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AmTrust Financial will eventually generate negative long term returns. The profitability progress is the general direction of AmTrust Financial's change in net profit over the period of time. It can combine multiple indicators of AmTrust Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
AmTrust Financial Services, Inc. operates as a property and casualty company. It was founded in 1998 and is headquartered in New York, New York. Amtrust Financial operates under InsuranceProperty Casualty classification in the United States and is traded on OTC Exchange. It employs 9300 people.
AmTrust Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AmTrust Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AmTrust Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AmTrust Financial's important profitability drivers and their relationship over time.
Use AmTrust Financial in pair-trading
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 AmTrust Financial 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 AmTrust Financial will appreciate offsetting losses from the drop in the long position's value.AmTrust Financial Pair Trading
AmTrust Financial Services Pair Trading Analysis
The ability to find closely correlated positions to AmTrust Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AmTrust Financial 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 AmTrust Financial - 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 AmTrust Financial Services to buy it.
The correlation of AmTrust Financial 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 AmTrust Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AmTrust Financial 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 AmTrust Financial 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.Use Investing Themes to Complement your AmTrust Financial position
In addition to having AmTrust Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Exotic Funds
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 43 constituents at this time.
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Other Information on Investing in AmTrust Pink Sheet
To fully project AmTrust Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AmTrust Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AmTrust Financial's income statement, its balance sheet, and the statement of cash flows.