# QAD Current Asset vs. Current Ratio

For QAD profitability analysis, we use financial ratios and fundamental drivers that measure the ability of QAD to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well QAD Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between QAD's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of QAD Inc over time as well as its relative position and ranking within its peers. Check out Your Equity Center.

QAD |

Is QAD's industry 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 QAD. If investors know QAD 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 QAD listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of QAD Inc is measured differently than its book value, which is the value of QAD that is recorded on the company's balance sheet. Investors also form their own opinion of QAD's value that differs from its market value or its book value, called intrinsic value, which is QAD's 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 QAD's market value can be influenced by many factors that don't directly affect QAD's 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 QAD's value and its price as these two are different measures arrived at by different means. Investors typically determine QAD value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, QAD's 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.

## QAD Inc Current Ratio vs. Current Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining QAD's current stock value. Our valuation model uses many indicators to compare QAD value to that of its competitors to determine the firm's financial worth. QAD Inc is rated**fifth**in current asset category among related companies. It is rated

**third**in current ratio category among related companies . The ratio of Current Asset to Current Ratio for QAD Inc is about 166,036,496 . Comparative valuation analysis is a catch-all model that can be used if you cannot value QAD by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for QAD's 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. 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 QAD's earnings, one of the primary drivers of an investment's value.

## QAD Current Ratio vs. Current Asset

Current Asset is all of the company's assets that can be used to pay off current liabilities within the current fiscal period or over the next 12 months. Current Asset includes cash or cash equivalents, accounts receivable, short-term investments, and the portion of prepaid liabilities which will be paid within the next 12 months. Because these assets are easily turned into cash, they are sometimes referred to as liquid assets.

QAD |
| = | 227.47 M |

Current Asset is important to company's creditors and private equity firms as they will often be interested in how much that company has in current assets since these assets can be easily liquidated in case the company goes bankrupt. However, it is usually not enough to know if a company is in good shape just based on current asset alone; the amount of current liabilities should always be considered.

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.

QAD |
| = | 1.37 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).

## QAD Current Ratio Comparison

QAD is currently under evaluation in current ratio category among related companies.

## QAD Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in QAD, profitability is also one of the essential criteria for including it into their portfolios because, without profit, QAD will eventually generate negative long term returns. The profitability progress is the general direction of QAD's change in net profit over the period of time. It can combine multiple indicators of QAD, 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.

QAD Inc., together with its subsidiaries, provides cloud-based enterprise software solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California. Q A operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 1930 people.

## QAD Profitability Driver Comparison

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

## Use QAD 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 QAD 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 QAD will appreciate offsetting losses from the drop in the long position's value.## QAD Pair Trading

### QAD Inc Pair Trading Analysis

The ability to find closely correlated positions to Lennar Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lennar Corp 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 Lennar Corp - 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 Lennar Corp to buy it.

The correlation of Lennar Corp is a statistical measure of how it moves in relation to other equities. 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 Lennar Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lennar Corp 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 Lennar Corp 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 QAD position

In addition to having QAD 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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##### Iron

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Check out Your Equity Center. Note that the QAD Inc information on this page should be used as a complementary analysis to other QAD's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

## Other Tools for QAD Stock

When running QAD Inc price analysis, check to measure QAD's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy QAD is operating at the current time. Most of QAD's value examination focuses on studying past and present price action to predict the probability of QAD's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move QAD's price. Additionally, you may evaluate how the addition of QAD to your portfolios can decrease your overall portfolio volatility.

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