Avalo Therapeutics currently holds roughly 11.25
M in cash with (26.75
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.2.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Avalo Therapeutics has an asset utilization ratio of 54.1 percent. This suggests that the company is making $0.54 for each dollar of assets. An increasing asset utilization means that Avalo Therapeutics is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Avalo Therapeutics, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Avalo Therapeutics along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Avalo Therapeutics' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Avalo Therapeutics. Your research has to be compared to or analyzed against Avalo Therapeutics' peers to derive any actionable benefits. When done correctly, Avalo Therapeutics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Avalo Therapeutics.
How important is Avalo Therapeutics's Liquidity
Avalo Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Avalo Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Avalo Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Avalo Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Avalo Therapeutics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Avalo Therapeutics's total debt and its cash.
Avalo Therapeutics Gross Profit
Avalo Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Avalo Therapeutics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Avalo Therapeutics Gross Profit growth over the last 10 years. Please check Avalo Therapeutics'
gross profit and other
fundamental indicators for more details.
Avalo Therapeutics Correlation with Peers
Investors in Avalo can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Avalo Therapeutics. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Avalo Therapeutics and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Avalo is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Avalo for more details
Detailed Perspective On Avalo Therapeutics
Avalo Therapeutics is very risky given 3 months investment horizon.
Avalo Therapeutics secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had 0.13% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to interpolate and analyze data for twenty-one different
technical indicators, which can help you to evaluate if expected returns of 1.19% are justified by taking the suggested risk. Use Avalo Therapeutics
mean deviation of 5.74, and Risk Adjusted Performance of 0.108 to evaluate company specific risk that cannot be
diversified away.
Over 3 percent slide for Avalo Therapeutics. What does it mean for investors?
The downside variance is down to 38.3 as of today.
Avalo Therapeutics is displaying above-average volatility over the selected time horizon. Investors should scrutinize Avalo Therapeutics independently to ensure intended
market timing strategies are aligned with expectations about Avalo Therapeutics volatility. Understanding different
market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Avalo Therapeutics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact
Avalo Therapeutics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Avalo Therapeutics
While some firms in the biotechnology industry are either recovering or due for a correction, Avalo may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Avalo nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Avalo Therapeutics.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Avalo Therapeutics. Please refer to our
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