This firm currently holds 138 M in liabilities with Debt to Equity (D/E) ratio of 0.36, which is about average as compared to similar companies. The company has a current ratio of 3.47, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Appharvest until it has trouble settling it off, either with new capital or with free cash flow. So, Appharvest's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Appharvest sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Appharvest to invest in growth at high rates of return. When we think about Appharvest's use of debt, we should always consider it together with cash and equity. The firm shows a Beta (market volatility) of 1.2665, which signifies a somewhat significant risk relative to the market. Let's try to break down what Appharvest's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Appharvest will likely underperform. Although it is extremely important to respect Appharvest historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Appharvest technical indicators, you can presently evaluate if the expected return of 0.0229% will be sustainable into the future. Appharvest right now shows a risk of 7.5%. Please confirm Appharvest potential upside, and the relationship between the sortino ratio and skewness to decide if Appharvest will be following its price patterns.
