Applied Optoelectronics, Inc. (NASDAQ:AAOI) also making a luring appeal, share price swings at $11.33 with percentage change of 6.89% in most recent trading session.
AAOI indeed has a lot to explore for the stakeholder, as looked at the specific technical indicators that showcase the instant and chronological performances of the stock. Through the help of financial ratio analysis, we can determine firm’s upshot and its return to its investors. As the profitability measures are important to company managers and owners alike. Starting from first part of this ratio analysis; ‘Margins’, and the profit margin can answer significantly to find consistent trends in a firm’s earnings, the AAOI has negative -16.20% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. And its sub part Gross profit margin standing at figure of 24.20%, while the firm has operating profit margin of -22.60%.
Moving toward the second part of analysis is ‘Returns’, Applied Optoelectronics, Inc. (NASDAQ:AAOI) has returns on investment of -0.30% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments. While returns on assets calculated as -7.10% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -10.50%, which is measuring a corporation’s profitability by revealing how much profit generates by AAOI with the shareholders’ money. On all these fact firm receives analyst recommendation of 3.20 on scale of 1-5, according to factsheet.
The AAOI also have attractive liquidity position, it has current ratio of 3.00 and quick ratio was calculated as 1.80. The debt to equity ratio appeared as 0.41 for seeing its liquidity position. The firm attains analyst recommendation of 3.20 out of 1-5 scale with week’s performance of 15.14%.