Kala Pharmaceuticals Net Income vs. Current Ratio
| KALA Stock | USD 6.91 0.11 1.62% |
Net Loss | First Reported 2015-12-31 | Previous Quarter -9.6 M | Current Value -8.9 M | Quarterly Volatility 18.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.59 | 0.39 |
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For Kala Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Kala Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Kala Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Kala Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Kala Pharmaceuticals over time as well as its relative position and ranking within its peers.
Kala |
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Kala Pharmaceuticals. If investors know Kala will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Kala Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (11.67) | Quarterly Revenue Growth (1.00) | Return On Assets (0.40) | Return On Equity (2.48) |
The market value of Kala Pharmaceuticals is measured differently than its book value, which is the value of Kala that is recorded on the company's balance sheet. Investors also form their own opinion of Kala Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Kala Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kala Pharmaceuticals' market value can be influenced by many factors that don't directly affect Kala Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kala Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Kala Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kala Pharmaceuticals' 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.
Kala Pharmaceuticals Current Ratio vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Kala Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Kala Pharmaceuticals value to that of its competitors to determine the firm's financial worth. Kala Pharmaceuticals is rated below average in net income category among its peers. It is rated below average in current ratio category among its peers . At present, Kala Pharmaceuticals' Net Loss is projected to decrease significantly based on the last few years of reporting. 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 Kala Pharmaceuticals' earnings, one of the primary drivers of an investment's value.Kala Current Ratio vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Kala Pharmaceuticals |
| = | (42.2 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Kala Pharmaceuticals |
| = | 2.54 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).
Kala Current Ratio Comparison
Kala Pharmaceuticals is currently under evaluation in current ratio category among its peers.
Kala Pharmaceuticals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Kala Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Kala Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Kala Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Kala Pharmaceuticals, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 4.6 K | 4.8 K | |
| Operating Income | -39.2 M | -41.1 M | |
| Net Loss | -46.4 M | -48.7 M | |
| Income Before Tax | -42.2 M | -44.3 M | |
| Total Other Income Expense Net | -3 M | -2.9 M | |
| Net Loss | -40.3 M | -42.4 M | |
| Net Loss | -42.2 M | -44.3 M | |
| Income Tax Expense | -40.1 M | -38.1 M | |
| Interest Income | 2.5 M | 2.6 M | |
| Net Interest Income | -3.5 M | -3.6 M | |
| Change To Netincome | -42 M | -39.9 M | |
| Net Loss | (17.35) | (18.22) | |
| Income Quality | 0.66 | 0.74 | |
| Net Income Per E B T | 0.01 | 0.01 |
Kala Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Kala Pharmaceuticals. 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 Kala Pharmaceuticals 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 Kala Pharmaceuticals' important profitability drivers and their relationship over time.
Use Kala Pharmaceuticals 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 Kala Pharmaceuticals 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 Kala Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.Kala Pharmaceuticals Pair Trading
Kala Pharmaceuticals Pair Trading Analysis
The ability to find closely correlated positions to Kala Pharmaceuticals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Kala Pharmaceuticals 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 Kala Pharmaceuticals - 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 Kala Pharmaceuticals to buy it.
The correlation of Kala Pharmaceuticals 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 Kala Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Kala Pharmaceuticals 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 Kala Pharmaceuticals 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 Kala Pharmaceuticals position
In addition to having Kala Pharmaceuticals 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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Check out Correlation Analysis. For information on how to trade Kala Stock refer to our How to Trade Kala Stock guide.You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Kala Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Kala Pharmaceuticals 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 Kala Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.