But depending on who we trade with, they'll want
current assets versus future.
Not exact matches
Most likely, however, your analysis of your
current asset allocation
versus your targets indicates that your portfolio is light on stocks.
That paper demonstrates a purely mechanical annual rebalancing of stocks meeting Graham's net
current asset value criterion generated a mean return between 1970 and 1983 of «29.4 % per year
versus 11.5 % per year for the NYSE - AMEX Index.»
In that same sense, the
current value of
assets versus liabilities in a financial firm correlates highly with the trading value of its equity.
The balance sheet looks terrible with
current assets of $ 25M
versus total liabilities of $ 346M.
But, the truth is that any net - net portfolio built on the kind of criteria I care about: long history of profitability, high
current assets (especially cash)
versus total liabilities, etc. is going to have a very low beta.
Using our WCR formula, the monthly ratio shows
current assets that are six times
current liabilities ($ 30 million
versus $ 5 million).