Liquidity Position Roundup of S&P 500 Components; Top Five Best Liquidity Position Holders under Review – ADI, LLTC, MCHP, FAST, XLNX

  on Nov 30,2012 Posted in Finance ,Investment Ideas
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Liquidity position of the company is the difference between the sum of liquid assets and incoming cash flows on one side and outgoing cash flows showing from commitments on the other side, gauged over a defined period, being the gauge of the liquidity risk.

Current ratio and quick acid ratio were key instruments of the liquidity positions. Current ratio shows a company’s ability to pay short-term borrowing and other current liabilities by comparing current assets to current liabilities. Current ratio shows a firm’s ability to remain solvent.

Similarly, quick ratio is used as a solvency metric to decide a company’s ability to pay down present liabilities with its cash, short term equivalents, and accounts receivables.

In this article we will discuss liquidity position of top five S&P 500 components with market volume over two million. Earlier we discussed top five overpriced stocks of utilities sector.

Analog Devices, Inc (NASDAQ:ADI) has the market capitalization of 12.24 billion while its P/E ratio was 19.09. The company has median market volume of 2.06 million. The Institutional ownership of the company was 87%. Shares of the company were moving ahead of SMA 50 with 2.44% while SMA 20 with 1.09%. Debt to equity ratio of Analog Devices was booked as 0.21 while long term debt to equity ratio was 0.21.

Linear Technology Corporation (NASDAQ:LLTC) has market capitalization of 7.65 billion. The Milpitas, California based company has price to book ratio of 9.51. The company has 231.39 million shares outstanding while it offers EPS was $1.68. Current ratio of Linear Technology was 8.10 and quick ratio was 7.70. The company earned 394.89 million in earlier 12 months.

In liquidity analysis of Microchip Technology Inc (NASDAQ:MCHP), value of debt to equity ratio was 0.49 while long term debt to equity ratio was 0.49. The company has market capitalization of 5.87 billion while its Price to book ratio was 2.99. Net profit margin of the company was 15.37% while gross profit margin was 57.06%.

Fastenal Company (NASDAQ:FAST) offered the $1.38 EPS while its beta factor was 0.95. The company has market capitalization of 12.50 billion and its institutional ownership was 78%. Shares of the company were lagging behind its 50 days simple moving average with -1.98% while moving ahead of SMA 20 with 0.53%. Current ratio was 6.59 while quick ratio was 3.46.

Xilinx, Inc (NASDAQ:XLNX) has market capitalization of 8.94 billion and its beta factor was 1.02. The institutional ownership of the corporation was 94% while its P/E ratio was 18.54. Current ratio, which shows liquidity position, was 6.57 while quick ratio was recorded as 5.97. Net profit margin of company was 22.88% while gross profit margin was 65.93.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.




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