Acacia Communications is prone to see interesting market rate changes from previous times. Recently NASDAQ: ACIA at https://www.webull.com/quote/nasdaq-acia placed their 52-week market share rate range which was $60.62 to $69.13. The company has traveled a lot from starting with -0.59% to %67.65 as of July. Counting the 5-year analysis its span was at 26% with the yearly earning on a share was 73.90%. But this date the EPS this year has risen to 559.20%.

The performance indicators of Acacia Communications

The Quick ratio of any company is said to be its measure to predict its vulnerability to pat back its short-period liabilities. A good quick ratio for any company would be higher than 1. The Quick Ratio of the company from the previous quarter is 4.50, which is quite remarkable. The P/E ratio and Beta score stand at $70.10 and 0.92 respectively. While pondering the technical analysis of the company, the average Raw Stochastic of NASDAQ: ACIA looked from the last 100 days is 82.61% which is also fumed up from 53.17% in the previous 2 weeks.

The company has no debts on its balance sheet; this is a good indicator that it can meet its long way obligations that include the responsibility of both its suppliers and workforce. The current liabilities of the company are US$62.2m with the assets of US$431.5m. This looks like they have met their commitments successfully. But if this number goes as high as 3 times, it would mean that the company is holding more than enough resources along with small return speculation. But as of now, they are doing quite well!

The approach to choose financial flexibility

Looking upon the financial structure one can easily determine that debts have benefits for any business’s capital. And one of the prime advantages of debt is low-cost business capital. But for the same, it has to deal with the assets of the company in liquidation and resource administration obligations. Acacia Communications has chosen financial stability over low-cost investment in stock market trading. But this works well with the cases if the company is a high development company. The revenue growth of the company was -30.1% which reasons its choice of not opting for debts. But with the declining sustainability, raising debt at an acceptable price will be not very easy.

On the other hand, when you look at this point of having no debt, it also states that they have supplementary monetary independence of their own which can help them grow at the pace they are now! The optimal structure of the capital has maybe facilitated its no liquidity needs as well. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.