Annaly Capital Debt To Equity vs. Current Ratio
| NLY-PI Preferred Stock | USD 25.14 0.04 0.16% |
For Annaly Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Annaly Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Annaly Capital Management utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Annaly Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Annaly Capital Management over time as well as its relative position and ranking within its peers.
Annaly |
Annaly Capital Management Current Ratio vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Annaly Capital's current stock value. Our valuation model uses many indicators to compare Annaly Capital value to that of its competitors to determine the firm's financial worth. Annaly Capital Management is considered to be number one stock in debt to equity category among its peers. It also is considered to be number one stock in current ratio category among its peers fabricating about 0.04 of Current Ratio per Debt To Equity. The ratio of Debt To Equity to Current Ratio for Annaly Capital Management is roughly 24.56 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Annaly Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Annaly Capital's Preferred Stock. 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.Annaly Current Ratio vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Annaly Capital |
| = | 5.16 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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.
Annaly Capital |
| = | 0.21 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).
Annaly Current Ratio Comparison
Annaly Capital is currently under evaluation in current ratio category among its peers.
Annaly Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Annaly Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Annaly Capital will eventually generate negative long term returns. The profitability progress is the general direction of Annaly Capital's change in net profit over the period of time. It can combine multiple indicators of Annaly 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.
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. Annaly Capital Management, Inc. was founded in 1996 and is based in New York, New York. Annaly Capital operates under REITMortgage classification in the United States and is traded on New York Stock Exchange. It employs 10 people.
Annaly Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Annaly 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 Annaly 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 Annaly Capital's important profitability drivers and their relationship over time.
Use Annaly 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 Annaly 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 Annaly Capital will appreciate offsetting losses from the drop in the long position's value.Annaly Capital Pair Trading
Annaly Capital Management Pair Trading Analysis
The ability to find closely correlated positions to Annaly 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 Annaly 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 Annaly 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 Annaly Capital Management to buy it.
The correlation of Annaly 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 Annaly Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Annaly Capital Management 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 Annaly 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 Annaly Capital position
In addition to having Annaly 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?
Run Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Office Supplies Theme or any other thematic opportunities.
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Other Information on Investing in Annaly Preferred Stock
To fully project Annaly Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Annaly Capital Management 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 Annaly Capital's income statement, its balance sheet, and the statement of cash flows.