| 2017 | 2018 | 2019 | 2020 (projected) | Long Term Debt to Equity | 5.84 | 8.68 | 15.28 | 16.48 | Interest Coverage | 0.61 | 0.39 | 0.34 | 0.52 |
Ashford Hospitality high volatility trend continues
 | By Raphi Shpitalnik | Macroaxis Story |
majority of equities are less volatile than Ashford, and most equities are expected to generate higher returns over the next 90 days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to review the risk of investing in Ashford Hospitality Trust. We will go over odds for Ashford Hospitality to generate above-average margins before the next earnings call. The newest Ashford risk factors may impact the value of the stock as we estimate Ashford Hospitality as currently overvalued. The real value is approaching 3.32 per share.
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Reviewed by Ellen Johnson
Ashford Hospitality Trust has roughly 240.79 M in cash with 162.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.29. Ashford Hospitality holds a performance score of 9 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.7535, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Ashford's beta means in this case. As returns on the market increase, Ashford Hospitality returns are expected to increase less than the market. However, during the bear market, the loss on holding Ashford Hospitality will be expected to be smaller as well. Although it is essential to pay attention to Ashford Hospitality historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our philosophy in foreseeing future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Ashford Hospitality Trust expected return of 13.94 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Ashford Hospitality variance, as well as the relationship between the value at risk and skewness to analyze future returns on Ashford Hospitality. Volatility is a rate at which the price of Ashford Hospitality 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 Ashford Hospitality may increase or decrease. In other words, similar to Ashford's beta indicator, it measures the risk of Ashford Hospitality and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ashford Hospitality 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 Ashford Hospitality's Liquidity
Ashford Hospitality financial leverage refers to using borrowed capital as a funding source to finance Ashford Hospitality Trust ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ashford Hospitality 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 Ashford Hospitality'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 Ashford Hospitality'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 Ashford Hospitality's total debt and its cash.
Ashford Hospitality Gross Profit
Ashford Hospitality Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ashford Hospitality 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 Ashford Hospitality Gross Profit growth over the last 10 years. Please check Ashford Hospitality's gross profit and other fundamental indicators for more details.
Ashford Hospitality Volatility Drivers
Ashford Hospitality unsystematic risk is unique to Ashford Hospitality Trust and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Ashford Hospitality you can also buy Sotherly Hotels. You can also mitigate this risk by investing in the real estate sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Ashford Hospitality important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Ashford Hospitality income statement and balance sheet. Here are more details about Ashford volatility.Click cells to compare fundamentals
What is the case for Ashford Hospitality Investors
Ashford Hospitality reported the last year's revenue of 1.42 B. Reported Net Loss for the year was (202.82 M) with profit before taxes, overhead, and interest of 410.26 M.
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