Current Asset
Select Equity |
Current Asset | = | Cash | + | Deposits | + | Liquid Assets |
Current Asset In A Nutshell
But first, current assets can be many different things across many industries, particularly regarding liquid assets, which are anything that can be sold quickly and turned into cash. Cash is cash, and deposits is money that is coming in from the different outlets of the company.
Current Assets is cash, plus deposits, plus liquid assets. Current assets are important because you want those to be in healthy proportion to the debt that the company may have. Let us break out each part of the equations to give you a little detail.
Closer Look at Current Asset
Taking a look at cash specifically, this is the most basic because it is what it is, cash. However, you want to know how much cash the company has and if it can live off of that cash if revenue began to slow. Cash is what makes a buinsess tick and should be regarded as one of the most important aspect in the current assets.
Switching over to deposits, think of it like a bank and people depositing money. A business may have money coming in as deposits, but it may not be on the books right now, but with certainty will come. If you want to take that a step further, you can look into the creditworthiness of the business that are depositing money and if they will continue to pay. Deposits could also represent money the company already has as the deposit.
Lastly are liquid assets, and these are assets that can be sold quickly and turned into cash. For some companies, this could be a vehicle or a piece of machinery that is in high demand. You will not take inventory into account because that may not be able to be liquidated quickly. Obviously if items needed to be liquidated, the company could discount the price enough to where they would fly off the shelf, but in your equation that typically is not included.
Current assets should be an important part of your fundamental research as this can give you an idea of how the company is in terms of debt and other relatable factors. You can compare this numbers across others in the industry, giving you an idea of where the company stands in relation to the others. If you still need help, there are many tools and groups out on the internet that can help guide you in the right direction.
All Fundamental Indicators
Pair Trading with Investor Education
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 Investor Education 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 Investor Education will appreciate offsetting losses from the drop in the long position's value.Other Consideration for investing
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |