Hennessy Capital Cash And Equivalents vs. Retained Earnings
| HCVIW Stock | USD 0.11 0.02 15.38% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Return On Assets | 0.0201 | 0.0236 |
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| Return On Equity | 0.0209 | 0.0242 |
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For Hennessy Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hennessy Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hennessy Capital Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hennessy Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hennessy Capital Investment over time as well as its relative position and ranking within its peers.
Hennessy |
Is Asset Management & Custody 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 Hennessy Capital. If investors know Hennessy 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 Hennessy Capital 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 0.392 | Return On Assets (0.02) |
The market value of Hennessy Capital Inv is measured differently than its book value, which is the value of Hennessy that is recorded on the company's balance sheet. Investors also form their own opinion of Hennessy Capital's value that differs from its market value or its book value, called intrinsic value, which is Hennessy Capital's 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 Hennessy Capital's market value can be influenced by many factors that don't directly affect Hennessy Capital's 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 Hennessy Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hennessy Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hennessy Capital's 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.
Hennessy Capital Inv Retained Earnings vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hennessy Capital's current stock value. Our valuation model uses many indicators to compare Hennessy Capital value to that of its competitors to determine the firm's financial worth. Hennessy Capital Investment is one of the top stocks in cash and equivalents category among its peers. It is rated # 3 in retained earnings category among its peers . Hennessy Capital reported Retained Earnings of (7.86 Million) in 2023. Comparative valuation analysis is a catch-all technique that is used if you cannot value Hennessy Capital by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Hennessy Retained Earnings 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.
Hennessy Capital |
| = | 26 K |
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).
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Hennessy Capital |
| = | (7.86 M) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Hennessy Retained Earnings Comparison
Hennessy Capital is currently under evaluation in retained earnings category among its peers.
Hennessy Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hennessy Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hennessy Capital will eventually generate negative long term returns. The profitability progress is the general direction of Hennessy Capital's change in net profit over the period of time. It can combine multiple indicators of Hennessy Capital, 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 Reported | Projected for Next Year | ||
| Operating Income | -6.7 M | -6.3 M | |
| Income Before Tax | 9.6 M | 10.4 M | |
| Total Other Income Expense Net | 16.3 M | 13.9 M | |
| Net Income | 6.4 M | 8.9 M | |
| Income Tax Expense | 3.2 M | 3.4 M | |
| Net Interest Income | 15.2 M | 11 M | |
| Interest Income | 15.2 M | 11 M | |
| Net Income From Continuing Ops | 6 M | 8.5 M | |
| Net Income Per Share | 0.15 | 0.14 | |
| Income Quality | (0.66) | (0.69) | |
| Net Income Per E B T | 0.67 | 0.88 |
Hennessy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hennessy Capital. 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 Hennessy Capital 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 Hennessy Capital's important profitability drivers and their relationship over time.
Use Hennessy Capital 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 Hennessy Capital 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 Hennessy Capital will appreciate offsetting losses from the drop in the long position's value.Hennessy Capital Pair Trading
Hennessy Capital Investment Pair Trading Analysis
The ability to find closely correlated positions to Hennessy Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hennessy Capital 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 Hennessy Capital - 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 Hennessy Capital Investment to buy it.
The correlation of Hennessy Capital 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 Hennessy Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hennessy Capital Inv 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 Hennessy Capital 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.Use Investing Themes to Complement your Hennessy Capital position
In addition to having Hennessy Capital 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.Did You Try This Idea?
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Additional Tools for Hennessy Stock Analysis
When running Hennessy Capital's price analysis, check to measure Hennessy Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hennessy Capital is operating at the current time. Most of Hennessy Capital's value examination focuses on studying past and present price action to predict the probability of Hennessy Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hennessy Capital's price. Additionally, you may evaluate how the addition of Hennessy Capital to your portfolios can decrease your overall portfolio volatility.