Will Heska (NASDAQ:HSKA) current volatility spike continue?
 | By Vlad Skutelnik | Macroaxis Story |
29% of stocks are less volatile than Heska, and 89% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many conservative investors are still indifferent towards current market risk, it is prudent, from our point of view, to go over Heska's current volatility. We are going to analyze if the current expected returns justify Heska's volatility.
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Reviewed by Michael Smolkin
Heska currently holds 53.83 M in liabilities with Debt to Equity (D/E) ratio of 0.2, which may suggest the firm is not taking enough advantage from borrowing. The entity has a current ratio of 10.99, suggesting that it is liquid enough and is able to pay its financial obligations when due. Volatility is a rate at which the price of Heska or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Heska may increase or decrease. In other words, similar to Heska's beta indicator, it measures the risk of Heska and helps estimate the fluctuations that may happen in a short period of time. So if prices of Heska fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Heska's Liquidity
Heska financial leverage refers to using borrowed capital as a funding source to finance Heska ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Heska 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 Heska's 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 Heska's 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 Heska's total debt and its cash.
A Deeper Perspective On Heska
The firm reported the previous year's revenue of 123.8 M. Net Loss for the year was (7.57 M) with profit before overhead, payroll, taxes, and interest of 54.45 M.
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