At the moment, the debt-to-equity of Alcoa Corporation (NYSE:AA) is low, standing at 25.56, a figure that is less than the 136.92 average recorded by the industry. This means that the company is currently holding a debt level at 1.45 B. AA shares have a strong debt-to-equity ratio but their quick ratio which reads 0.80 is strong and might cause problems for them later in the future.
Even though there was a drop of -46.01% in revenue, the company failed to succeed in outperforming the industry average of 37.87%. For the most recent quarter, the net income has jumped by +1306.25%. This strength in their income has affected them and thus increased their earnings to $549.00 M. The sustained growth in their revenue has helped boost their earnings per share.
Alcoa Corporation (AA) has seen their earnings per share increased to $1.21 during the last quarter in comparison to the same quarter last year. They have recorded a 276.80% growing earnings per share earnings.
Comparing them to other companies in the industry and the overall Basic Materials sector, the industry average is 6.89 while 18.90 is of the sector.
AA total operating cash flow had dropped to $74 billion compared to $239 billion in the same quarter last year.
Comparing it to other companies in the sector, Alcoa Corporation ROE is above 18.90 that of both the sector average.
Added to that, this ratio has missed the industry net margin that stands at 6.89.
Still some above discussed indicators of the $5.39B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the AA shares to either perform positively or negatively when compared to other stocks. The primary strengths of Alcoa Corporation can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.