Critical Profitability Ratio Analysis: Zynga Inc. (NASDAQ:ZNGA)

Zynga Inc. (NASDAQ:ZNGA) under comprehensive financial analysis presented as an active mover. Shares eased down -0.35% to trade at $2.81 in recent trading session. The firm has floated short ration of 2.62%, hold to candle to sentiment indicator of Short Ratio, which was 1.85.

Limelight under Ratio Analysis

Zynga Inc. (NASDAQ:ZNGA) stands at price to sale ratio of 3.30 that signifies the value placed on each dollar of a firm’s sales or incomes; it is most relevant ratio to compare companies in similar sector. It has price to book ratio of 1.58, which gauges the market price of a share over its book value.

Analysts Rating

Finally, analysts shed their light over the ZNGA price targets; maintaining price high target of 5 while at average the price target was 3.26 in contrast with the current price of 2.81. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 6 analysts recommending BUY ratings for current month and for previous month 6 stands on similar situation; while 7 for the current month as compared to 8 analysts recommending for HOLD from the pool for previous month. While 1 analyst gave Underweight and 1 out of pool consider it as Sell for current month. For the overall, consensus ratings were for Overweight.

Profitability Analysis

Zynga Inc. (NASDAQ:ZNGA) need to consider for profitability analysis, the firm has profit margin of negative -14.60% to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin calculated as 67.80% and -15.40% respectively. ZNGA has returns on investment of -7.40%. The returns on assets were -5.60% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -6.60%, which is measuring profitability by disclosing how much profit generates by ZNGA with the shareholders’ money.

The firm attains analyst recommendation of 2.60 on scale of 1-5. The co has price volatility of 1.67% for a week and 3.26% for a month. Narrow down focus to firm performance, its weekly performance was 2.18% and monthly performance was 11.51%. The stock price of ZNGA is moving up from its 20 days moving average with 3.67% and isolated positively from 50 days moving average with 6.31%.

Zynga Inc. (NASDAQ:ZNGA) current ratio calculated as 4.00, this value is acceptable if it lies in 1.3% to 3%. But it varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 4.00, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.00, sometimes it remain same with long term debt to equity ratio.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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