Danakali Price To Earning vs. Current Ratio

DNKLYDelisted Stock  USD 0.24  0.00  0.00%   
Considering the key profitability indicators obtained from Danakali's historical financial statements, Danakali Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Danakali's ability to earn profits and add value for shareholders.
For Danakali profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Danakali to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Danakali Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Danakali's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Danakali Limited over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Please note, there is a significant difference between Danakali's value and its price as these two are different measures arrived at by different means. Investors typically determine if Danakali is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Danakali's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Danakali Limited Current Ratio vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Danakali's current stock value. Our valuation model uses many indicators to compare Danakali value to that of its competitors to determine the firm's financial worth.
Danakali Limited is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in current ratio category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Danakali by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Danakali'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.

Danakali Current Ratio vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Danakali

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
(27.37) X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.

Danakali

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
19.10 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).

Danakali Current Ratio Comparison

Danakali is currently under evaluation in current ratio category among its peers.

Danakali Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Danakali, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Danakali will eventually generate negative long term returns. The profitability progress is the general direction of Danakali's change in net profit over the period of time. It can combine multiple indicators of Danakali, 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.
Danakali Limited, together with its subsidiaries, engages in the exploration of minerals in Eritrea, East Africa. Danakali Limited was incorporated in 2001 and is based in Perth, Australia. DANAKALI operates under Agricultural Inputs classification in the United States and is traded on OTC Exchange.

Danakali Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Danakali. 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 Danakali 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 Danakali's important profitability drivers and their relationship over time.

Use Danakali 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 Danakali 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 Danakali will appreciate offsetting losses from the drop in the long position's value.

Danakali Pair Trading

Danakali Limited Pair Trading Analysis

The ability to find closely correlated positions to Danakali could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Danakali 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 Danakali - 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 Danakali Limited to buy it.
The correlation of Danakali 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 Danakali moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Danakali Limited 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 Danakali 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Danakali position

In addition to having Danakali 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.

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Run Investing Thematic Idea Now

Investing
Investing Theme
Companies involved in money management and investment banking services. The Investing theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investing Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Consideration for investing in Danakali Pink Sheet

If you are still planning to invest in Danakali Limited check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Danakali's history and understand the potential risks before investing.
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