CMC Metals Return On Asset vs. Current Ratio
| CMCXF Stock | USD 0.02 0.01 100.00% |
For CMC Metals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CMC Metals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CMC Metals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CMC Metals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CMC Metals over time as well as its relative position and ranking within its peers.
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CMC Metals Current Ratio vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CMC Metals's current stock value. Our valuation model uses many indicators to compare CMC Metals value to that of its competitors to determine the firm's financial worth. CMC Metals is number one stock in return on asset category among its peers. It also is number one stock in current ratio category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CMC Metals' earnings, one of the primary drivers of an investment's value.CMC Current Ratio vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | -1.98 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
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| = | 3.04 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).
CMC Current Ratio Comparison
CMC Metals is currently under evaluation in current ratio category among its peers.
CMC Metals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CMC Metals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CMC Metals will eventually generate negative long term returns. The profitability progress is the general direction of CMC Metals' change in net profit over the period of time. It can combine multiple indicators of CMC Metals, 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.
CMC Metals Ltd. engages in the acquisition and exploration of mineral properties in Canada and the United States. CMC Metals Ltd. was incorporated in 1996 and is headquartered in Vancouver, Canada. Cmc Metals operates under Other Precious Metals Mining classification in the United States and is traded on OTC Exchange.
CMC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CMC Metals. 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 CMC Metals 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 CMC Metals' important profitability drivers and their relationship over time.
Use CMC Metals 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 CMC Metals 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 CMC Metals will appreciate offsetting losses from the drop in the long position's value.CMC Metals Pair Trading
CMC Metals Pair Trading Analysis
The ability to find closely correlated positions to CMC Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CMC Metals 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 CMC Metals - 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 CMC Metals to buy it.
The correlation of CMC Metals 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 CMC Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CMC Metals 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 CMC Metals 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 CMC Metals position
In addition to having CMC Metals 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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Other Information on Investing in CMC OTC Stock
To fully project CMC Metals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CMC Metals 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 CMC Metals' income statement, its balance sheet, and the statement of cash flows.