LCI Industries currently holds 874.08
M in liabilities with Debt to Equity (D/E) ratio of 1.08, which is about average as compared to similar companies. On a scale of 0 to 100, LCI Industries holds a
performance score of 17. The firm secures a Beta (Market Risk) of 0.0134, which conveys not very significant fluctuations relative to the market. Let's try to break down what LCI Industries's beta means in this case. As returns on the market increase, LCI Industries returns are expected to increase less than the market. However, during the bear market, the loss on holding LCI Industries will be expected to be smaller as well. Although it is vital to follow
LCI Industries price patterns, it is good to be conservative about what you can do with the information regarding equity historical
price patterns. The philosophy towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. We have found twenty-eight
technical indicators for LCI Industries, which you can use to evaluate the performance of the entity. Please exercises LCI Industries
total risk alpha,
expected short fall,
market facilitation index, as well as the
relationship between the
value at risk and
daily balance of power to make a quick decision on whether LCI Industries current price movements will revert.
LCI Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of LCI Industries, including all of LCI Industries's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of LCI Industries assets, the company is considered highly leveraged. Understanding the
composition and structure of overall LCI Industries debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Understanding LCI Total Debt
LCI Industries liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. LCI Industries has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on LCI Industries balance sheet include debt obligations and money owed to different LCI Industries vendors, workers, and loan providers. Below is the chart of LCI main long-term debt accounts currently reported on its balance sheet.
You can use LCI Industries
financial leverage analysis tool to get a better grip on understanding its financial position
How important is LCI Industries's Liquidity
LCI Industries
financial leverage refers to using borrowed capital as a funding source to finance LCI Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LCI Industries 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 LCI Industries' 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 LCI Industries' 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 LCI Industries's total debt and its cash.
Breaking down the case for LCI Industries
The current price rise of LCI Industries may encourage stockholders to take a closer look at the entity as it closed today at a share price of
122.01 on
266,301 in trading volume. The company management teams may have good odds in positioning the entity resources to exploit market volatility in
September. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.14. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from LCI Industries partners.
Asset Breakdown
| Total Assets | 2.01 Billion |
| Current Assets | 723.75 Million |
| Assets Non Current | 1.29 Billion |
| Goodwill | 747.21 Million |
| Tax Assets | 15.54 Million |
Will LCI Industries drop impact its fundamentals?
Semi variance is down to 6.4. It may hint to a possible volatility drop. LCI Industries currently demonstrates below-verage downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.66. However, we do advice investors to further question LCI Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Bottom Line On LCI Industries
While some firms in the recreational vehicles industry are either recovering or due for a correction, LCI Industries may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take over new shares of LCI Industries nor exit 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 LCI Industries.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of LCI Industries. Please refer to our
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