Cresco Labs Cash And Equivalents vs. Return On Equity
| CRLBF Stock | USD 1.19 0.10 9.17% |
For Cresco Labs profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cresco Labs to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cresco Labs utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cresco Labs's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cresco Labs over time as well as its relative position and ranking within its peers.
Cresco |
Cresco Labs Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cresco Labs's current stock value. Our valuation model uses many indicators to compare Cresco Labs value to that of its competitors to determine the firm's financial worth. Cresco Labs is rated third in cash and equivalents category among its peers. It also is rated third in return on equity 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 Cresco Labs' earnings, one of the primary drivers of an investment's value.Cresco Return On Equity vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Cresco Labs |
| = | 130.04 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.
Cresco Labs |
| = | -0.0635 |
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.
Cresco Return On Equity Comparison
Cresco Labs is currently under evaluation in return on equity category among its peers.
Cresco Labs Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cresco Labs, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cresco Labs will eventually generate negative long term returns. The profitability progress is the general direction of Cresco Labs' change in net profit over the period of time. It can combine multiple indicators of Cresco Labs, 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.
Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. The company was founded in 2013 and is headquartered in Chicago, Illinois. Cresco Labs operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 3300 people.
Cresco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cresco Labs. 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 Cresco Labs 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 Cresco Labs' important profitability drivers and their relationship over time.
Use Cresco Labs 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 Cresco Labs 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 Cresco Labs will appreciate offsetting losses from the drop in the long position's value.Cresco Labs Pair Trading
Cresco Labs Pair Trading Analysis
The ability to find closely correlated positions to Cresco Labs could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cresco Labs 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 Cresco Labs - 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 Cresco Labs to buy it.
The correlation of Cresco Labs 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 Cresco Labs moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cresco Labs 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 Cresco Labs 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 Cresco Labs position
In addition to having Cresco Labs 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 Cresco OTC Stock
To fully project Cresco Labs' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cresco Labs 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 Cresco Labs' income statement, its balance sheet, and the statement of cash flows.