Lithium Ionic Current Ratio vs. Book Value Per Share
| LTHCF Stock | USD 0.56 0.05 8.20% |
For Lithium Ionic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lithium Ionic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lithium Ionic Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lithium Ionic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lithium Ionic Corp over time as well as its relative position and ranking within its peers.
Lithium |
Lithium Ionic Corp Book Value Per Share vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lithium Ionic's current stock value. Our valuation model uses many indicators to compare Lithium Ionic value to that of its competitors to determine the firm's financial worth. Lithium Ionic Corp is rated below average in current ratio category among its peers. It is rated below average in book value per share category among its peers creating about 0.01 of Book Value Per Share per Current Ratio. The ratio of Current Ratio to Book Value Per Share for Lithium Ionic Corp is roughly 71.38 . 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 Lithium Ionic's earnings, one of the primary drivers of an investment's value.Lithium Book Value Per Share vs. Current Ratio
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.
Lithium Ionic |
| = | 8.28 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).
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Lithium Ionic |
| = | 0.12 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Lithium Book Value Per Share Comparison
Lithium Ionic is currently under evaluation in book value per share category among its peers.
Lithium Ionic Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lithium Ionic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lithium Ionic will eventually generate negative long term returns. The profitability progress is the general direction of Lithium Ionic's change in net profit over the period of time. It can combine multiple indicators of Lithium Ionic, 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.
Lithium Ionic Corp. engages in the acquisition, exploration, and development of mineral properties in Brazil. It owns a 100 percent ownership interest in the Itinga lithium project that comprises five mineral licenses covering an area of approximately 1,300 hectares in the prolific Aracuai lithium province. Lithium Ionic is traded on OTC Exchange in the United States.
Lithium Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lithium Ionic. 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 Lithium Ionic 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 Lithium Ionic's important profitability drivers and their relationship over time.
Use Lithium Ionic 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 Lithium Ionic 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 Lithium Ionic will appreciate offsetting losses from the drop in the long position's value.Lithium Ionic Pair Trading
Lithium Ionic Corp Pair Trading Analysis
The ability to find closely correlated positions to Lithium Ionic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lithium Ionic 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 Lithium Ionic - 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 Lithium Ionic Corp to buy it.
The correlation of Lithium Ionic 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 Lithium Ionic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lithium Ionic Corp 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 Lithium Ionic 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 Lithium Ionic position
In addition to having Lithium Ionic 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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Beers
Companies involved in production and distribution of domestic and international beer. The Beers theme has 37 constituents at this time.
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Other Information on Investing in Lithium OTC Stock
To fully project Lithium Ionic's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lithium Ionic Corp 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 Lithium Ionic's income statement, its balance sheet, and the statement of cash flows.