Verrica Pharmaceuticals Return On Asset vs. Cash And Equivalents

VRCA Stock  USD 0.65  0.06  10.17%   
Based on Verrica Pharmaceuticals' profitability indicators, Verrica Pharmaceuticals may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Verrica Pharmaceuticals' ability to earn profits and add value for shareholders. At present, Verrica Pharmaceuticals' Price To Sales Ratio is projected to increase significantly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 297.27, whereas Operating Cash Flow Sales Ratio is forecasted to decline to (9.09). At present, Verrica Pharmaceuticals' Net Interest Income is projected to decrease significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 2.7 M, whereas Operating Income is projected to grow to (56.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.00.98
Fairly Up
Pretty Stable
For Verrica Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Verrica Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Verrica Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Verrica Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Verrica Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
For information on how to trade Verrica Stock refer to our How to Trade Verrica Stock guide.
Is Pharmaceuticals 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 Verrica Pharmaceuticals. If investors know Verrica 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 Verrica Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.84)
Revenue Per Share
0.198
Quarterly Revenue Growth
27.445
Return On Assets
(0.71)
Return On Equity
(20.60)
The market value of Verrica Pharmaceuticals is measured differently than its book value, which is the value of Verrica that is recorded on the company's balance sheet. Investors also form their own opinion of Verrica Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Verrica Pharmaceuticals' 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 Verrica Pharmaceuticals' market value can be influenced by many factors that don't directly affect Verrica Pharmaceuticals' 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 Verrica Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Verrica Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verrica Pharmaceuticals' 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.

Verrica Pharmaceuticals Cash And Equivalents vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Verrica Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Verrica Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Verrica Pharmaceuticals is rated below average in return on asset category among its peers. It is rated below average in cash and equivalents category among its peers . 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 Verrica Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Verrica 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.

Verrica Pharmaceuticals

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.71
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.

Verrica Pharmaceuticals

Cash

 = 

Bank Deposits

+

Liquidities

 = 
14.4 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).

Verrica Cash And Equivalents Comparison

Verrica Pharmaceuticals is currently under evaluation in cash and equivalents category among its peers.

Verrica Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Verrica Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Verrica Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Verrica Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Verrica Pharmaceuticals, 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
Net Interest Income519.3 K545.3 K
Operating Income-59.2 M-56.2 M
Net Loss-43.5 M-41.3 M
Income Before Tax-60.3 M-57.3 M
Total Other Income Expense Net-1.1 M-1.2 M
Net Loss-22 M-23.1 M
Net Loss-60.3 M-57.3 M
Income Tax Expense768.3 K729.9 K
Interest Income2.6 M2.7 M
Non Operating Income Net Other-917.1 K-871.2 K
Change To Netincome7.8 M4.8 M
Net Loss(1.70)(1.78)
Income Quality 0.66  0.90 
Net Income Per E B T 1.02  0.86 

Verrica Profitability Driver Comparison

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

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Verrica Pharmaceuticals without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Insider Screener Now

   

Insider Screener

Find insiders across different sectors to evaluate their impact on performance
All  Next Launch Module

Use Investing Themes to Complement your Verrica Pharmaceuticals position

In addition to having Verrica Pharmaceuticals 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 Education Thematic Idea Now

Education
Education Theme
Companies involved in apprenticeship, education, tutoring, schooling, online universities, and other learning services. The Education theme has 39 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 Education Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Verrica Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Verrica Pharmaceuticals' 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 Verrica Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Verrica Pharmaceuticals Stock:
Check out World Market Map.
For information on how to trade Verrica Stock refer to our How to Trade Verrica Stock guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
To fully project Verrica Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Verrica Pharmaceuticals 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 Verrica Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Verrica Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Verrica Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Verrica Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Verrica Pharmaceuticals'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.