Xtra-Gold Resources Cash And Equivalents vs. Current Ratio
| XTG Stock | CAD 2.11 0.03 1.40% |
For Xtra-Gold Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Xtra-Gold Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Xtra Gold Resources Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Xtra-Gold Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Xtra Gold Resources Corp over time as well as its relative position and ranking within its peers.
Xtra-Gold |
Xtra Gold Resources Current Ratio vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Xtra-Gold Resources's current stock value. Our valuation model uses many indicators to compare Xtra-Gold Resources value to that of its competitors to determine the firm's financial worth. Xtra Gold Resources Corp is rated first in cash and equivalents category among its peers. It is rated first in current ratio category among its peers . The ratio of Cash And Equivalents to Current Ratio for Xtra Gold Resources Corp is about 277,666 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Xtra-Gold Resources by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Xtra-Gold Resources' 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.Xtra-Gold Current Ratio 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.
Xtra-Gold Resources |
| = | 5.78 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).
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.
Xtra-Gold Resources |
| = | 20.82 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).
Xtra-Gold Current Ratio Comparison
Xtra Gold is currently under evaluation in current ratio category among its peers.
Xtra-Gold Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Xtra-Gold Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Xtra-Gold Resources will eventually generate negative long term returns. The profitability progress is the general direction of Xtra-Gold Resources' change in net profit over the period of time. It can combine multiple indicators of Xtra-Gold 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.
Xtra-Gold Resources Corp. engages in the exploration and development of gold properties in Ghana, West Africa. Xtra-Gold Resources Corp. was incorporated in 1998 and is based in Nassau, Bahamas. XTRA GOLD is traded on Toronto Stock Exchange in Canada.
Xtra-Gold Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Xtra-Gold 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 Xtra-Gold 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 Xtra-Gold Resources' important profitability drivers and their relationship over time.
Use Xtra-Gold 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 Xtra-Gold 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 Xtra-Gold Resources will appreciate offsetting losses from the drop in the long position's value.Xtra-Gold Resources Pair Trading
Xtra Gold Resources Corp Pair Trading Analysis
The ability to find closely correlated positions to Xtra-Gold 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 Xtra-Gold 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 Xtra-Gold 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 Xtra Gold Resources Corp to buy it.
The correlation of Xtra-Gold 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 Xtra-Gold Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Xtra Gold Resources 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 Xtra-Gold 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.Use Investing Themes to Complement your Xtra-Gold Resources position
In addition to having Xtra-Gold 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.Did You Try This Idea?
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Other Information on Investing in Xtra-Gold Stock
To fully project Xtra-Gold Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Xtra Gold Resources 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 Xtra-Gold Resources' income statement, its balance sheet, and the statement of cash flows.