Hanover Foods EBITDA vs. Current Ratio

HNFSA Stock  USD 63.00  0.00  0.00%   
Based on Hanover Foods' profitability indicators, Hanover Foods 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 Hanover Foods' ability to earn profits and add value for shareholders.
For Hanover Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hanover Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hanover Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hanover Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hanover Foods over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Hanover Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hanover Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hanover Foods' 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.

Hanover Foods Current Ratio vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hanover Foods's current stock value. Our valuation model uses many indicators to compare Hanover Foods value to that of its competitors to determine the firm's financial worth.
Hanover Foods is one of the top stocks in ebitda category among its peers. It is rated # 4 in current ratio category among its peers . The ratio of EBITDA to Current Ratio for Hanover Foods is about  19,121,569 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hanover Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hanover Foods' Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Hanover Current Ratio vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Hanover Foods

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
29.26 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Hanover Foods

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
1.53 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Hanover Current Ratio Comparison

Hanover Foods is currently under evaluation in current ratio category among its peers.

Hanover Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hanover Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hanover Foods will eventually generate negative long term returns. The profitability progress is the general direction of Hanover Foods' change in net profit over the period of time. It can combine multiple indicators of Hanover Foods, 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.
Hanover Foods Corporation engages in processing, packaging, and selling fresh canned and frozen products. The company was founded in 1924 and is based in Hanover, Pennsylvania. Hanover Foods operates under Packaged Foods classification in the United States and is traded on OTC Exchange. It employs 2205 people.

Hanover Profitability Driver Comparison

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

Use Hanover Foods 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 Hanover Foods 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 Hanover Foods will appreciate offsetting losses from the drop in the long position's value.

Hanover Foods Pair Trading

Hanover Foods Pair Trading Analysis

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

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Other Information on Investing in Hanover Pink Sheet

To fully project Hanover Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hanover Foods 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 Hanover Foods' income statement, its balance sheet, and the statement of cash flows.
Potential Hanover Foods investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hanover Foods investors may work on each financial statement separately, they are all related. The changes in Hanover Foods's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hanover Foods'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.