Affinity Bancshares Return On Asset vs. Cash And Equivalents

AFBI Stock  USD 21.66  0.11  0.51%   
Based on Affinity Bancshares' profitability indicators, Affinity Bancshares may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Affinity Bancshares' ability to earn profits and add value for shareholders. As of now, Affinity Bancshares' Price To Sales Ratio is decreasing as compared to previous years. The Affinity Bancshares' current Price Sales Ratio is estimated to increase to 5.12, while Days Sales Outstanding is projected to decrease to 61.25. As of now, Affinity Bancshares' Income Quality is increasing as compared to previous years.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.230.2171
Notably Up
Slightly volatile
Operating Profit Margin0.160.2824
Way Down
Very volatile
Pretax Profit Margin0.150.2824
Way Down
Very volatile
Return On Assets0.00440.0076
Way Down
Very volatile
Return On Equity0.02710.0531
Way Down
Pretty Stable
For Affinity Bancshares profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Affinity Bancshares to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Affinity Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Affinity Bancshares's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Affinity Bancshares over time as well as its relative position and ranking within its peers.
  
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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Affinity Bancshares. If investors know Affinity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Affinity Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.04
Earnings Share
0.85
Revenue Per Share
4.772
Quarterly Revenue Growth
0.06
Return On Assets
0.0065
The market value of Affinity Bancshares is measured differently than its book value, which is the value of Affinity that is recorded on the company's balance sheet. Investors also form their own opinion of Affinity Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Affinity Bancshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Affinity Bancshares' market value can be influenced by many factors that don't directly affect Affinity Bancshares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Affinity Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Affinity Bancshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Affinity Bancshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Affinity Bancshares Cash And Equivalents vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Affinity Bancshares's current stock value. Our valuation model uses many indicators to compare Affinity Bancshares value to that of its competitors to determine the firm's financial worth.
Affinity Bancshares is rated fourth in return on asset category among its peers. It is rated third in cash and equivalents category among its peers creating about  8,523,076,923  of Cash And Equivalents per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Affinity Bancshares' earnings, one of the primary drivers of an investment's value.

Affinity Cash And Equivalents vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Affinity Bancshares

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0065
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Affinity Bancshares

Cash

 = 

Bank Deposits

+

Liquidities

 = 
55.4 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Affinity Cash And Equivalents Comparison

Affinity Bancshares is currently under evaluation in cash and equivalents category among its peers.

Affinity Bancshares Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Affinity Bancshares, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Affinity Bancshares will eventually generate negative long term returns. The profitability progress is the general direction of Affinity Bancshares' change in net profit over the period of time. It can combine multiple indicators of Affinity Bancshares, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-6.3 M-6 M
Net Income Applicable To Common Shares8.2 M4.3 M
Income Tax Expense1.9 M1.4 M
Net Interest Income27.8 M27.4 M
Interest Income40.6 M33.2 M
Operating Income8.4 M7.5 M
Net Income From Continuing Ops6.6 M5.5 M
Income Before Tax8.4 MM
Total Other Income Expense Net8.4 M8.8 M
Net Income6.4 M4.8 M
Change To Netincome1.1 M1.4 M
Net Income Per Share 1.00  1.05 
Income Quality 1.22  2.42 
Net Income Per E B T 0.77  0.57 

Affinity Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Affinity Bancshares. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Affinity Bancshares position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Affinity Bancshares' important profitability drivers and their relationship over time.

Use Affinity Bancshares in pair-trading

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 Affinity Bancshares 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 Affinity Bancshares will appreciate offsetting losses from the drop in the long position's value.

Affinity Bancshares Pair Trading

Affinity Bancshares Pair Trading Analysis

The ability to find closely correlated positions to Affinity Bancshares could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Affinity Bancshares when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Affinity Bancshares - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Affinity Bancshares to buy it.
The correlation of Affinity Bancshares is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Affinity Bancshares moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Affinity Bancshares moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Affinity Bancshares can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Affinity Bancshares position

In addition to having Affinity Bancshares in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Affinity Bancshares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Affinity Bancshares' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Affinity Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Affinity Bancshares Stock:
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For more detail on how to invest in Affinity Stock please use our How to Invest in Affinity Bancshares guide.
You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Affinity Bancshares' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Affinity Bancshares at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Affinity Bancshares' income statement, its balance sheet, and the statement of cash flows.
Potential Affinity Bancshares investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Affinity Bancshares investors may work on each financial statement separately, they are all related. The changes in Affinity Bancshares's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Affinity Bancshares's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.