American Resources Cash And Equivalents vs. Return On Asset

AREC Stock  USD 1.23  0.02  1.65%   
Based on American Resources' profitability indicators, American Resources Corp 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 American Resources' ability to earn profits and add value for shareholders. At present, American Resources' EV To Sales is projected to increase significantly based on the last few years of reporting. The current year's Price Sales Ratio is expected to grow to 8.45, whereas Days Sales Outstanding is forecasted to decline to 5.22. At present, American Resources' Non Operating Income Net Other is projected to increase significantly based on the last few years of reporting. The current year's Income Quality is expected to grow to 1.33, whereas Operating Income is forecasted to decline to (12 M).
For American Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Resources Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Resources Corp over time as well as its relative position and ranking within its peers.
  
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Is Oil, Gas & Consumable Fuels 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 American Resources. If investors know American 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 American Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.25)
Revenue Per Share
0.079
Quarterly Revenue Growth
(1.00)
Return On Assets
(0.09)
Return On Equity
(45.05)
The market value of American Resources Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Resources' value that differs from its market value or its book value, called intrinsic value, which is American Resources' 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 American Resources' market value can be influenced by many factors that don't directly affect American Resources' 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 American Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Resources' 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.

American Resources Corp Return On Asset vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining American Resources's current stock value. Our valuation model uses many indicators to compare American Resources value to that of its competitors to determine the firm's financial worth.
American Resources Corp is number one stock in cash and equivalents category among its peers. It also is number one stock in return on asset category among its peers . As of December 11, 2024, Return On Assets is expected to decline to -0.13. 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 American Resources' earnings, one of the primary drivers of an investment's value.

American Return On Asset vs. Cash And Equivalents

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.

American Resources

Cash

 = 

Bank Deposits

+

Liquidities

 = 
3.81 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).
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.

American Resources

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0914
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.

American Return On Asset Comparison

American Resources is currently under evaluation in return on asset category among its peers.

American Resources Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in American Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Resources will eventually generate negative long term returns. The profitability progress is the general direction of American Resources' change in net profit over the period of time. It can combine multiple indicators of American Resources, 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
Operating Income-11.4 M-12 M
Income Before Tax-11.5 M-12 M
Total Other Income Expense Net-32.8 K-31.1 K
Net Loss-20.8 M-21.8 M
Net Loss-11.5 M-12 M
Income Tax Expense(2.00)(2.10)
Net Income From Continuing Ops8.4 M8.8 M
Non Operating Income Net Other1.3 M1.5 M
Interest Income38.1 K36.2 K
Net Interest Income-1.5 M-1.5 M
Change To Netincome1.3 M1.2 M
Net Loss(0.15)(0.16)
Income Quality 1.27  1.33 
Net Loss(17.92)(17.03)

American Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on American Resources. 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 American Resources 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 American Resources' important profitability drivers and their relationship over time.

Use American Resources 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 American Resources 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 American Resources will appreciate offsetting losses from the drop in the long position's value.

American Resources Pair Trading

American Resources Corp Pair Trading Analysis

The ability to find closely correlated positions to American Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Resources 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 American Resources - 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 American Resources Corp to buy it.
The correlation of American Resources 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 American Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Resources Corp 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 American Resources 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 American Resources position

In addition to having American Resources 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 American Resources Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Resources' 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 American Resources Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Resources Corp Stock:
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You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project American Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Resources Corp 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 American Resources' income statement, its balance sheet, and the statement of cash flows.
Potential American Resources investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Resources investors may work on each financial statement separately, they are all related. The changes in American Resources's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Resources'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.