What’s Behind the Numbers For AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX), Freshii Inc. (TSX:FRII)?

The Current Ratio of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 4.64.  The Current Ratio is used by investors to determine whether a company can pay short term and long term debts.  The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities.  A high current ratio indicates that the company has little trouble managing their working capital.  A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.

Some investors may be lamenting the fact that they have not taken full advantage of the long bull run. There are plenty of pundits that are calling for a sharp stock market decline, but there are also many who believe that the ceiling has been raised and there is much more room for stocks to go higher. Getting into the market at these levels may be holding some investors back from jumping into the fray, and nobody can be sure which way the momentum will swing as we near the end of the year. The next round of company earnings reports should provide some good information about future prospects. Investors will be closely watching to see which sectors are running at full speed and which ones are lagging.

Volatility & Price
Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 111.468500.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 60.083300.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 54.813300.

We can now take a quick look at some historical stock price index data. AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) presently has a 10 month price index of 0.96825. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.24490, the 24 month is 0.95016, and the 36 month is 0.97134. Narrowing in a bit closer, the 5 month price index is 1.46988, the 3 month is 1.62667, and the 1 month is currently 1.27083.

The Leverage Ratio of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 0.217562.  Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can measure how much of a company’s capital comes from debt.  With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

C-Score
AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) currently has a Montier C-score of 1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

F Score, ERP5 and Magic Formula

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 1.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 17202.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 17553.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Shareholder Yield

The Q.i. Value of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 87.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.  The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 99.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of AcelRx Pharmaceuticals, Inc. (NasdaqGM:ACRX) is 99.

Freshii Inc. (TSX:FRII) presently has a current ratio of 5.96. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

Investors have plenty to keep up with when following day to day business news. Sifting through the headlines can be cumbersome, and figuring out which data to pay attention to can be very time consuming. News events can play a big role in the investing world. Big news has the ability to push a stock up or down. Sometimes the move may be justified, and other times it may not be. Disciplined investors are usually skilled at determining which information to focus on. Overreactions can play a large role in determining the long-term health of a portfolio. Investors often have to understand that a great stock can see periods of decline just as a weak stock may experience periods of strength. Putting in the research hours can help the investor prepare for opportunities when they spot unusual action in the stock market.

Volatility & Price

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Freshii Inc. (TSX:FRII) is 55.879600.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Freshii Inc. (TSX:FRII) is 32.331100.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 34.019800.

We can now take a quick look at some historical stock price index data. Freshii Inc. (TSX:FRII) presently has a 10 month price index of 0.57778. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.52042, the 24 month is 0.53191, and the 36 month is 0.53191. Narrowing in a bit closer, the 5 month price index is 0.96012, the 3 month is 0.90909, and the 1 month is currently 0.98039.

F Score, ERP5 and Magic Formula

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Freshii Inc. (TSX:FRII) is 5.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Freshii Inc. (TSX:FRII) is 18164.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Freshii Inc. (TSX:FRII) is 10396.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Leverage Ratio of Freshii Inc. (TSX:FRII) is 0.000000.  Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can measure how much of a company’s capital comes from debt.  With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

The Q.i. Value of Freshii Inc. (TSX:FRII) is 54.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.  The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Freshii Inc. (TSX:FRII) is 73.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Freshii Inc. (TSX:FRII) is 73.

C-Score
Freshii Inc. (TSX:FRII) currently has a Montier C-score of 1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.