Looking for popular stocks with rising assets and other encouraging accounting statistics? We screened for stocks with just that in mind.
We started with companies that have a market cap of $300 million or more. Then we ran that through a screen for relative volume above 1. This means that the stock is trading more frequently than average, showing increased interest in the stock.
Next we screened for rising current ratios. Current Ratio= (Current Assets)/(Current Liabilities)
The higher the ratio is, the easier it is for a company to pay off debt. It also implies that the company has more cash, or other assets with high liquidity. A current ratio above one is an indicator for a healthy firm. When the ratio is rising it’s considered bullish because the company is gaining more assets, or decreasing their liabilities (paying off loans, ect).
Finally, we screened for encouraging accounts receivable trends. This is an accounting statistic that expresses companies who have less receivables (accounts that owe them money) relative to overall revenue. It’s important because there is no guarantee that the firm will be paid by those accounts, so decreasing receivables imply healthier income coming to the company. Explained another way, more clients are paying up front instead of financing their payments over time. This puts more cash in the company’s pocket and they do not have to worry about ever getting paid in full.
Business Section: Investing Ideas
Current ratio and accounts receivable can go hand in hand. Both have to do with the company posting health accounting numbers. When your assets are increasing compared to debts, and you are collecting healthier revenue, that is a very bullish sign.
Do you think these 10 firms will continue to exhibit strong accounting figures as time moves on?
1. Alcoa, Inc. (AA, Earnings, Analysts, Financials): Engages in the production and management of aluminum, fabricated aluminum, and alumina. Market cap at $9.23B, most recent closing price at $8.65. Current Ratio increased from 1.08 to 1.12 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, the Current Ratio increased from 1.12 to 1.3 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the final time interval, the Current Ratio increased from 1.3 to 1.31 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). Revenue grew by 21.41% during the most recent quarter ($6,419M vs. $5,287M y/y). Accounts receivable grew by 0.31% during the same time period ($2,301M vs. $2,294M y/y). Receivables, as a percentage of current assets, decreased from 35.19% to 30.% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).
2. Boeing Co. (BA, Earnings, Analysts, Financials): Engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Market cap at $53.82B, most recent closing price at $71.85. Current Ratio increased from 0.84 to 1.07 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, the Current Ratio increased from 1.07 to 1.15 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 1.15 to 1.21 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 30.% during the most recent quarter ($19,383M vs. $14,910M y/y). Accounts receivable grew by 8.89% during the same time period ($6,847M vs. $6,288M y/y). Receivables, as a percentage of current assets, decreased from 15.33% to 13.66% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
3. Cal-Maine Foods, Inc. (CALM, Earnings, Analysts, Financials): Engages in the production, grading, packaging, marketing, and distribution of shell eggs primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Market cap at $881.41M, most recent closing price at $36.91. Current Ratio increased from 2.18 to 2.33 during the first time interval (52 weeks ending 2009-05-30 vs. 52 weeks ending 2008-05-31). For the second time interval, the Current Ratio increased from 2.33 to 2.87 (52 weeks ending 2010-05-29 vs. 52 weeks ending 2009-05-30). And for the final time interval, the Current Ratio increased from 2.87 to 3.3 (52 weeks ending 2011-05-28 vs. 52 weeks ending 2010-05-29). Revenue grew by 10.55% during the most recent quarter ($303.66M vs. $274.67M y/y). Accounts receivable grew by 1.86% during the same time period ($66.34M vs. $65.13M y/y). Receivables, as a percentage of current assets, decreased from 17.01% to 15.91% during the most recent quarter (comparing 13 weeks ending 2012-02-25 to 13 weeks ending 2011-02-26).
4. Chemtura Corporation (CHMT, Earnings, Analysts, Financials): Engages in the manufacture and sale of specialty chemical solutions and consumer products worldwide. Market cap at $1.41B, most recent closing price at $14.26. Current Ratio increased from 0.69 to 2.47 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, the Current Ratio increased from 2.47 to 2.91 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 2.91 to 3.39 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 1.29% during the most recent quarter ($708M vs. $699M y/y). Accounts receivable grew by -4.12% during the same time period ($559M vs. $583M y/y). Receivables, as a percentage of current assets, decreased from 39.42% to 39.31% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
5. Fortinet Inc. (FTNT, Earnings, Analysts, Financials): Provides network security appliances and unified threat management (UTM) network security solutions to enterprises, service providers, and government entities worldwide. Market cap at $3.33B, most recent closing price at $21.18. Current Ratio increased from 1.25 to 1.9 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-28). For the second time interval, the Current Ratio increased from 1.9 to 1.92 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 1.92 to 1.96 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 25.71% during the most recent quarter ($117.25M vs. $93.27M y/y). Accounts receivable grew by 18.83% during the same time period ($84.76M vs. $71.33M y/y). Receivables, as a percentage of current assets, decreased from 17.65% to 15.37% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
6. Multimedia Games Inc. (MGAM, Earnings, Analysts, Financials): Engages in the development and supply of comprehensive systems, content, electronic games, and player terminals for the casino, charity, international bingo, and video lottery markets in the United States and Internationally. Market cap at $346.08M, most recent closing price at $12.64. Current Ratio increased from 1.79 to 1.93 during the first time interval (12 months ending 2009-09-30 vs. 12 months ending 2008-09-30). For the second time interval, the Current Ratio increased from 1.93 to 2.86 (12 months ending 2010-09-30 vs. 12 months ending 2009-09-30). And for the final time interval, the Current Ratio increased from 2.86 to 2.92 (12 months ending 2011-09-30 vs. 12 months ending 2010-09-30). Revenue grew by 31.2% during the most recent quarter ($39.53M vs. $30.13M y/y). Accounts receivable grew by -38.24% during the same time period ($29.06M vs. $47.05M y/y). Receivables, as a percentage of current assets, decreased from 56.63% to 29.27% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
7. Mead Johnson Nutrition Company (MJN, Earnings, Analysts, Financials): Distributes, and sells infant formulas, children’s nutritional products, and other nutritional products in Asia, Europe, Latin America, and North America. Market cap at $17.48B, most recent closing price at $85.72. Current Ratio increased from 1.1 to 1.21 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, the Current Ratio increased from 1.21 to 1.48 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 1.48 to 1.57 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 9.65% during the most recent quarter ($986.6M vs. $899.8M y/y). Accounts receivable grew by 3.09% during the same time period ($384M vs. $372.5M y/y). Receivables, as a percentage of current assets, decreased from 23.27% to 21.8% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
8. OSI Systems, Inc (OSIS, Earnings, Analysts, Financials): Designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, healthcare, defense, and aerospace markets worldwide. Market cap at $1.29B, most recent closing price at $64.74. Current Ratio increased from 2.21 to 2.38 during the first time interval (12 months ending 2009-06-30 vs. 12 months ending 2008-06-30). For the second time interval, the Current Ratio increased from 2.38 to 2.42 (12 months ending 2010-06-30 vs. 12 months ending 2009-06-30). And for the final time interval, the Current Ratio increased from 2.42 to 2.52 (12 months ending 2011-06-30 vs. 12 months ending 2010-06-30). Revenue grew by 19.16% during the most recent quarter ($208.44M vs. $174.93M y/y). Accounts receivable grew by 12.41% during the same time period ($157.83M vs. $140.4M y/y). Receivables, as a percentage of current assets, decreased from 37.75% to 32.48% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
9. Procera Networks, Inc. (PKT, Earnings, Analysts, Financials): Provides network traffic awareness, analysis, and control solutions for broadband service providers. Market cap at $2.32B, most recent closing price at $20.67. Current Ratio increased from 1.86 to 1.99 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, the Current Ratio increased from 1.99 to 2.25 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 2.25 to 4.51 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 78.18% during the most recent quarter ($12.33M vs. $6.92M y/y). Accounts receivable grew by -7.52% during the same time period ($8.36M vs. $9.04M y/y). Receivables, as a percentage of current assets, decreased from 41.93% to 14.14% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
10. Swift Transportation Company (SWFT, Earnings, Analysts, Financials): Provides transportation services. Market cap at $1.39B, most recent closing price at $9.94. Current Ratio increased from 0.6 to 0.96 during the first time interval (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). For the second time interval, the Current Ratio increased from 0.96 to 1.57 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). And for the final time interval, the Current Ratio increased from 1.57 to 2.1 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). Revenue grew by 8.96% during the most recent quarter ($826.88M vs. $758.89M y/y). Accounts receivable grew by 4.94% during the same time period ($347.42M vs. $331.06M y/y). Receivables, as a percentage of current assets, decreased from 61.94% to 53.78% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
Written by Ryan Horch
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Dig Deeper: Access Company Snapshots, Charts, Filings
- Alcoa, Inc. (AA, Chart, Download SEC Filings)
- Boeing Co. (BA, Chart, Download SEC Filings)
- Cal-Maine Foods, Inc. (CALM, Chart, Download SEC Filings)
- Chemtura Corporation (CHMT, Chart, Download SEC Filings)
- Fortinet Inc. (FTNT, Chart, Download SEC Filings)
- Multimedia Games Inc. (MGAM, Chart, Download SEC Filings)
- Mead Johnson Nutrition Company (MJN, Chart, Download SEC Filings)
- OSI Systems, Inc (OSIS, Chart, Download SEC Filings)
- Procera Networks, Inc. (PKT, Chart, Download SEC Filings)
- Swift Transportation Company (SWFT, Chart, Download SEC Filings)
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Fotinet margin has gone down so much. In addition to the obsolete technologies, the company seems to have management issues especially in the marketing and sales. Rumors are that very high turn over in the marketing team. The two brothers should step down as they don't really know how to manage a company.