Aussie Broadband Ltd
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Quick analysis of Aussie Broadband Ltd (30 sec.)

1. Valuation of Aussie Broadband Ltd (5 min.)

Live pricePrice per share (EOD)

A$2.80

Book Value per Share

A$1.17

2. Growth of Aussie Broadband Ltd (5 min.)

Is Aussie Broadband Ltd growing?

	Current year	Previous year	Grow	Grow %
How rich?	$184.9m	$60.3m	$103.2m	63.1%

How much money is Aussie Broadband Ltd making?

	Current year	Previous year	Grow	Grow %
Making money	$3.2m	$1.8m	$1.3m	42.7%
Net Profit Margin	1.2%	0.9%	-	-

How much money comes from the company's main activities?

Quarterly Yearly

3. Financial Health of Aussie Broadband Ltd (5 min.)

4. Comparing to competitors in the Telecom Services industry (5 min.)

Industry Rankings (Telecom Services)

Richest
#155 / 273

Most Revenue
#128 / 273

Most Profit
#138 / 273

Most Efficient
#170 / 273

Fundamentals of Aussie Broadband Ltd

Financial Health

Profitability Details

	Compared to previous year	Compared to industry
The company is making a profit.
Using its assets, the company is inefficient in making profit.
Using its investors money, the company is inefficient in making profit.

Operating Efficiency Details

	Compared to previous year	Compared to industry
The company is operating inefficient.
The company is very efficient in keeping operating costs low.

Liquidity Details

	Compared to previous year	Compared to industry
The company is unable to pay all its short-term debts.
The company is just not able to pay all its short-term debts with the most liquid assets.

Solvency Details

	Compared to previous year	Compared to industry
The company is very able to pay all its debts by selling its assets.
The company is able to pay all its debts with equity.

1.1. Profitability of Aussie Broadband Ltd.

1.1. Profitability

1.1.1. Net Profit Margin

Measures how much net profit Aussie Broadband Ltd earns for each $1 of revenue.

Above 10% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
A Net Profit Margin of 2.3% means that $0.02 for each $1 in revenue is generated as profit.

Let's take a look of the Net Profit Margin trends of Aussie Broadband Ltd:

The MRQ is 2.3%. The company is making a profit. +1
The TTM is 1.2%. The company is making a profit. +1

Trends

Current period		Compared to		+/-
MRQ	2.3%	TTM	1.2%	+1.1%
TTM	1.2%	YOY	0.9%	+0.2%
TTM	1.2%	5Y	0.1%	+1.1%
5Y	0.1%	10Y	0.1%	0.0%

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	2.3%	4.8%	-2.5%
TTM	1.2%	4.9%	-3.7%
YOY	0.9%	7.9%	-7.0%
5Y	0.1%	5.1%	-5.0%
10Y	0.1%	5.6%	-5.5%

Measures how much net profit Aussie Broadband Ltd earns for each $1 of revenue.

Revenue is the amount of profit Aussie Broadband Ltd generates before taxes and all other costs. For example, when you buy a cup of coffee it will cost you $3. The company does not earn $3 in profit but also has to pay various costs and taxes to create that cup of coffee. Let's assume the cost of creating a cup of coffee is $1.5.

The $3 you pay for a cup of coffee is called revenue.
The $1.5 that’s left over when all costs to create that cup of coffee (including taxes) are deduced from the revenue is called net profit.

The net profit margin looks at how much net profit Aussie Broadband Ltd earns for each $1 in revenue.

How to use net profit margin

Higher profit margin is better (more profit).
Above 10% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be used to compare companies within the Telecom Services industry.

You typically want a high profit margin. This means that for each $1 in sales, Aussie Broadband Ltd makes more profit. This shows the investor how efficiently Aussie Broadband Ltd is operating in general and compared to other companies in the same industry. Aussie Broadband Ltd operates in the Telecom Services industry.

Why do investors use net profit margin in their analysis

It helps investors to determine the efficiency of Aussie Broadband Ltd. If profit margins remain low (compared to the Telecom Services industry mean) and there are no improvements to make in production costs or other areas that might be a warning sign. If profit margins are high that means the company has low overhead costs and is efficiently using its resources to generate profit.

The three steps every investor should look at:

What is the current net profit margin?
The current most recent quarter (MRQ) Net Profit Margin of Aussie Broadband Ltd is 0.02. This means that Aussie Broadband Ltd earned $0.02 for each $1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Net Profit Margin of the Telecom Services industry is 4.8%.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare Aussie Broadband Ltd with other companies in the same industry (Telecom Services).
Net profit margin should rise over the years.
Can be influenced when Aussie Broadband Ltd sells assets (profit will increase while costs remain the same).
It won’t show what part of Aussie Broadband Ltd is doing great or needs improvement (it only looks at total revenue and total net income).

How to calculate net profit margin

Net profit margin = net income / total revenue * 100%

Real example of Aussie Broadband Ltd

You need the following data to determine net profit margin:

Income statement from the period you want to calculate (for example, MRQ or TTM).

Net income MRQ Aussie Broadband Ltd = 8,569
Total revenue MRQ Aussie Broadband Ltd = 378,991
$8,569 / $378,991 = 0.02 or 2.3%

Higher is better

The higher the net profit margin, the more efficient the company is generating income. This helps investors to determine how the company is managing money. The net profit margin is an important indicator when diving into the financial health of a company. Overall, you want to see the net profit margin rising over the years. That means the company improved their production and made it more efficient (if possible).

You can use the net profit margin to compare companies within the same industry. If there are two companies where one is much bigger but the smaller one has a higher net profit margin, that means the smaller company is more efficiently using operational costs.

Important: Profit margins can be very different between industries. Companies with assembly lines or transports are much more prone to see shifting in prices for fuel, ingredients and maintenance compared to companies that only provide services. You should never compare net profit margin between different industries.

1.1.2. Return on Assets

Shows how efficient Aussie Broadband Ltd is using its assets to generate profit.

Above 5% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
1.3% Return on Assets means that Aussie Broadband Ltd generated $0.01 profit for each $1 in assets.

Let's take a look of the Return on Assets trends of Aussie Broadband Ltd:

The MRQ is 1.3%. Using its assets, the company is less efficient in making profit.
The TTM is 0.9%. Using its assets, the company is inefficient in making profit. -1

Trends

Current period		Compared to		+/-
MRQ	1.3%	TTM	0.9%	+0.4%
TTM	0.9%	YOY	2.3%	-1.4%
TTM	0.9%	5Y	0.2%	+0.7%
5Y	0.2%	10Y	0.2%	0.0%

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	1.3%	0.8%	+0.5%
TTM	0.9%	0.9%	0.0%
YOY	2.3%	1.3%	+1.0%
5Y	0.2%	1.0%	-0.8%
10Y	0.2%	1.1%	-0.9%

Shows how efficient Aussie Broadband Ltd is using its assets to generate profit.

For a farm, a tractor is considered an asset. The tractor helps ploughing the land making it possible to plant and harvest crops. But the tractor might be old and needing maintenance all the time reducing its efficiency. Return on assets indicates how effectively the farm is using the tractor (and other assets that help the core business) to plough the land.

How to use return on assets

Higher is better.
Above 5% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use return on assets in their analysis

Shows the investor how effectively Aussie Broadband Ltd is using its resources to generate profit. If the return on assets (1.3%) from Aussie Broadband Ltd are higher than the Telecom Services mean (0.8%) that means Aussie Broadband Ltd is using its resources better than their competitors. If not, that means their competitors are more efficient in using their resources to generate profit.

An investor should always look at:

What is the current return on assets?
The current most recent quarter (MRQ) Return on Assets of Aussie Broadband Ltd is 1.3%. This means the company generated $0.01 for each $1 in assets.
How does it compare to the industry?
The mean MRQ Return on Assets of the Telecom Services industry is 0.8%.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
If a company has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

How to calculate return on assets

Return on assets = net income / total assets * 100%

Real example Aussie Broadband Ltd

You need the following data to determine return on assets (ROA):

Income statement
Balance sheet

Net income MRQ (income statement) from Aussie Broadband Ltd = 8,569
Total assets MRQ (balance sheet) from Aussie Broadband Ltd = 639,866
8,569 / 639,866 = 0.01 or 1.3%

ROA is an important ratio as it will tell you how effectively Aussie Broadband Ltd is using its resources to generate profits. Example:

Bob and Kristin both sell ice cream in the summer. They both have an ice cream truck. The truck Bob owes cost him $20.000 and the truck Kristin owes cost her $1500. Over the summer, Bob earned $2000 and Kristin earned $200. To calculate the return on assets:

Bob: $2000 / $20.000 * 100% = 10%
Kristin: $200 / $1500 * 100% = 13.3%

This tells you Bob’s company is more valuable but Kristin's company is more efficient. Be aware that total assets can change over time. A transportation business will buy and sell trucks or planes all the time. Before using return on assets as a guideline, you have to know what the exact assets are. For a company that has many assets changing over time, it’s better to calculate the average assets instead of the total assets.

1.1.3. Return on Equity

Shows how efficient Aussie Broadband Ltd is using its investors money to generate profit.

Above 15%-20% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
3.1% Return on Equity means Aussie Broadband Ltd generated $0.03 for each $1 the owners (shareholders) invested.

Let's take a look of the Return on Equity trends of Aussie Broadband Ltd:

The MRQ is 3.1%. Using its investors money, the company is inefficient in making profit. -1
The TTM is 1.9%. Using its investors money, the company is inefficient in making profit. -1

Trends

Current period		Compared to		+/-
MRQ	3.1%	TTM	1.9%	+1.2%
TTM	1.9%	YOY	4.4%	-2.5%
TTM	1.9%	5Y	0.4%	+1.4%
5Y	0.4%	10Y	0.4%	0.0%

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	3.1%	3.2%	-0.1%
TTM	1.9%	3.0%	-1.1%
YOY	4.4%	3.8%	+0.6%
5Y	0.4%	2.9%	-2.5%
10Y	0.4%	2.7%	-2.3%

Shows how efficient Aussie Broadband Ltd is using its investors money to generate profit.

A publicly traded company (any company that issues shares to the public) is owned by its shareholders. Return on equity calculates the amount of profit for every $1 the shareholders invested.

How to use return on equity

Higher is better.
Above 15%-20% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use return on equity in their analysis

To find out the owners/management's attitude toward their company. You typically want the owners/management to invest in the company and focus on generating profit. If not enough profit is generated (compared to the Telecom Services industry mean), the company might not be investing their money efficiently.

The three steps every investor should look at:

What is the current return on equity?
The current most recent quarter (MRQ) Return on Equity of Aussie Broadband Ltd is 3.1%. This means Aussie Broadband Ltd generated $0.03 for each $1 the owners (shareholders) invested.
How does it compare to the industry?
The mean MRQ Return on Equity of the Telecom Services industry is 3.2%.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if Aussie Broadband Ltd existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Does not include intangible assets (non physical assets like licences, computer software, etc.).
Stockholders equity and shareholders equity refer to the same thing.
Liabilities should not be more than three times return on equity.

How to calculate return on equity

Return on equity = net profit / shareholders equity * 100%

Real example of Aussie Broadband Ltd

You need the following data to determine ROE:

Income statement
Balance sheet
Net profit MRQ (income statement) Aussie Broadband Ltd = 8,569
Shareholders equity (balance sheet) MRQ Aussie Broadband Ltd = 278,057
8,569 / 278,057 = 0.03 or 3.1%

A negative shareholder equity is a warning sign. It means the company has more liabilities than assets. It might also mean that the owners did not invest enough money or they are taking money out of the business.

1.2. Operating Efficiency of Aussie Broadband Ltd.

1.2. Operating Efficiency

1.2.1. Operating Margin

Measures how efficient Aussie Broadband Ltd is operating .

Measures how much profit Aussie Broadband Ltd makes for each $1 of sales after paying variable costs (production costs, wages, etc) but before taxes.
Above 15% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
An Operating Margin of 0.0% means the company generated $0.00 for each $1 in revenue (before taxes).

Let's take a look of the Operating Margin trends of Aussie Broadband Ltd:

The MRQ is 0.0%. The data is not here.

Trends

Current period		Compared to		+/-
MRQ	-	TTM	0.7%	-0.7%
TTM	0.7%	YOY	0.5%	+0.2%
TTM	0.7%	5Y	0.7%	+0.0%
5Y	0.7%	10Y	0.7%	0.0%

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	-	9.8%	-9.8%
TTM	0.7%	9.6%	-8.9%
YOY	0.5%	11.5%	-11.0%
5Y	0.7%	11.5%	-10.8%
10Y	0.7%	11.5%	-10.8%

Measures how efficient Aussie Broadband Ltd is operating .

The more effecient a company creates products or provides services, the more profit it generates.

How to use operating margin

Higher is better
Above 15% is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries
Can be used to compare companies

Why do investors use operating margin in their analysis

To determine how much profit Aussie Broadband Ltd is making from it’s core business.

The three steps every investor should look at:

What is the current net profit margin?
The current most recent quarter (MRQ) Operating Margin of Aussie Broadband Ltd is 0.0%. This means that Aussie Broadband Ltd earned $0.00 for each $1 in revenue in the most recent quarter.
How does it compare to the industry?
The mean MRQ Operating Margin of the Telecom Services industry is 9.8%.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry
Can be calculated in different ways

How to calculate operating margin

Operating margin = operating earnings / total revenue

Real example of Aussie Broadband Ltd

You need the following data to determine operating margin:

Income statement
Operating earnings MRQ Aussie Broadband Ltd = 16,732
Total revenue MRQ Aussie Broadband Ltd = 378,991
$16,732 / $378,991 = 0.00 or 0.0%

Operating margin is used to calculate how much profit a company makes after variable costs of production but before paying interest and taxes. Some variable costs examples are wages, raw materials, packaging, and transaction fees. The amount of variable costs is different for each company and industry. In general, a higher operating margin is better as this implicates that a company is running efficiently.

For investors, a higher operating margin is a good sign. Although you should always look at operating margin in the long term. If operating margin is fluctuating over the years this might be a sign that things are not running efficiently enough. It’s a way to check how much profit a company is making from its core business.

Operation earnings can be calculated in multiple ways:

Operation earnings = EBIT - non operating income + non operating expense
Operation earnings = Gross profit - operating expense - depreciation and amortisation
Operation earnings = Total revenue - COGS (costs of goods sold) - indirect costs

1.2.2. Operating Ratio

Measures how efficient Aussie Broadband Ltd is keeping operating costs low.

Below 1 is considered healthy (always compare to Telecom Services industry mean).
An Operation Ratio of 0.65 means that the operating costs are $0.65 for each $1 in net sales.

Let's take a look of the Operating Ratio trends of Aussie Broadband Ltd:

The MRQ is 0.651. The company is efficient in keeping operating costs low. +1
The TTM is 0.446. The company is very efficient in keeping operating costs low. +2

Trends

Current period		Compared to		+/-
MRQ	0.651	TTM	0.446	+0.205
TTM	0.446	YOY	0.360	+0.086
TTM	0.446	5Y	0.439	+0.007
5Y	0.439	10Y	0.439	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	0.651	1.093	-0.442
TTM	0.446	1.086	-0.640
YOY	0.360	1.086	-0.726
5Y	0.439	1.067	-0.628
10Y	0.439	1.026	-0.587

Measures how efficient Aussie Broadband Ltd is keeping operating costs low.

If the operating ratio is below 1 that means the company is making money. The lower the operating ratio, the more efficient the company.

How to use operating ratio

Lower is better.
Below 1 is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use operating ratio in their analysis

Shows if costs of creating products and or services is increasing or decreasing. The lower the operating ratio, the more efficient the company is creating products and services.

The three steps every investor should look at:

What is the current Operatin ratio?
The current most recent quarter (MRQ) Operating Ratio of Aussie Broadband Ltd is 65.1%. This means that Aussie Broadband Ltd earned $0.65 for each $1 in net sales in the most recent quarter.
How does it compare to the industry?
The mean MRQ Operating Ratio of the Telecom Services industry is 1.09.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
You need COGS to calculate operating ratio which is not always shown in the income statement.
Does not consider debt.

How to calculate operating ratio

Operating ratio = Operating expenses + COGS \ Net sales

Real life example Aussie Broadband Ltd

You need the following data to determine operating ratio:

Income statement

COGS is not always specified on the income statement. If so you can use the following calculation:

(cost of revenue + total operating expenses) \ total revenue
(246,818 +) \ 378,991 = 0.65

The operating ratio measures the efficiency of a company at keeping low costs while generating profits from sales. It compares the total operating expenses to the net amount of sales. The total operating expenses exists of:

COGS (materials, labour, rent of facility, repairs)
Operating expenses (legal fees, marketing, wages, rent, maintenance/repairs)

Operating expenses are all the costs the company makes that are not directly tied to the production of the service or product. Where COGS are costs that are directly tied to the production of a product or service.

Do note that COGS is not always available in the income statement. Some companies include COGS in the operating expenses while others list COGS separately. To make it even more confusing, COGS is also known as “costs of sales” and costs of sales is the same as costs of revenue.

The operating ratio tells you how efficient the company is creating its products or services while keeping prices low. In this case, a lower ratio is better. Higher or rising operating ratios might tell you that costs are rising while sales are not improving or staying the same.

1.3. Liquidity of Aussie Broadband Ltd.

1.3. Liquidity

1.3.1. Current Ratio

Measures if Aussie Broadband Ltd is able to pay off Short-term Debt.

Above 1.5 is considered healthy (always compare to Telecom Services industry mean).
A Current Ratio of 0.85 means the company has $0.85 in assets for each $1 in short-term debts.

Let's take a look of the Current Ratio trends of Aussie Broadband Ltd:

The MRQ is 0.848. The company is just not able to pay all its short-term debts. -1
The TTM is 0.692. The company is unable to pay all its short-term debts. -2

Trends

Current period		Compared to		+/-
MRQ	0.848	TTM	0.692	+0.156
TTM	0.692	YOY	2.304	-1.612
TTM	0.692	5Y	1.627	-0.935
5Y	1.627	10Y	1.627	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	0.848	0.947	-0.099
TTM	0.692	0.939	-0.247
YOY	2.304	1.007	+1.297
5Y	1.627	1.020	+0.607
10Y	1.627	0.963	+0.664

Measures if Aussie Broadband Ltd is able to pay off Short-term Debt.

How to use current ratio

Higher is better
Above 1.5 is considered healthy (always compare to Telecom Services industry mean).
Can be very different between industries
Can be used to compare companies

Why do investors use current ratio in their analysis

Shows if the company can pay of short term debts if needed. A company that can't pay off it's short term debts might get in trouble if they have to pay off their short term debts for whatever reason. For example, markets can change due to global events like covid-19 or the war in Ukraine versus Russia. Because debts are always taken based on future income, it might become troublesome for Aussie Broadband Ltd if something happens in the market that will cause sales to plummet.

The three steps every investor should look at:

What is the current current Ratio?
The current most recent quarter (MRQ) Current Ratio of Aussie Broadband Ltd is 0.85. This means Aussie Broadband Ltd has $0.85 in assets for each $1 in short-term debts.
How does it compare to the industry?
The mean MRQ Current Ratio of the Telecom Services industry is 0.95.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Might be deluded.
Not all assets can always be quickly sold.
Can be manipulated by increasing or decreasing the assets and/or liabilities.

How to calculate current ratio

Current ratio = current assets \ current liabilities

Real life example Aussie Broadband Ltd

You need the following data to determine operating ratio:

Balance sheet
Current ratio = current assets \ current liabilities
108,424 \ 127,890) = 0.85

The current ratio measures if Aussie Broadband Ltd is able to pay short-term debts (obligations). Short term in this context means all debt obligations that are about to expire within one year. The current ratio incorporates current liabilities and current assets. Current assets are all the assets a company has that are expected to be consumed or sold within standard business operations. You can find the current assets in the balance sheet. They consist of:

Inventory
Accounts receivable
Marketable securities
Prepaid expenses
Cash
Cash equivalents
liquid assets

The current liabilities are short term obligations that are due within one year. These consist of:

Short term debts
Dividends
Income taxes
Short-term debts
Accounts payable
Interest payments

The result shows an investor if Aussie Broadband Ltd is able to pay all its short-term debts if they were due all at once. When the result of the above formula is below 1, then Aussie Broadband Ltd does not have enough capital after selling all its assets to pay all short-term debts. If the ratio drops far below 1 that might indicate Aussie Broadband Ltd is or will be in financial trouble anytime soon.

Although this gives an investor some clues, the current ratio may also be deluded. Because owning assets does not mean the company can easily sell them. Also, Accounts receivable may be quite old (they will probably never pay) which deludes the current ratio. As with all ratios, you should only compare them between the same industries and companies.

1.3.2. Quick Ratio

Measures if Aussie Broadband Ltd is able to pay off Short-term Debt but only using the most liquid assets.

Above 1 is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
A Quick Ratio of 0.54 means the company can pay off $0.54 for each $1 in debt (using most liquid assets).

Let's take a look of the Quick Ratio trends of Aussie Broadband Ltd:

The MRQ is 0.539. The company is just not able to pay all its short-term debts with the most liquid assets. -1
The TTM is 0.431. The company is just not able to pay all its short-term debts with the most liquid assets. -1

Trends

Current period		Compared to		+/-
MRQ	0.539	TTM	0.431	+0.107
TTM	0.431	YOY	1.255	-0.824
TTM	0.431	5Y	0.990	-0.559
5Y	0.990	10Y	0.990	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	0.539	0.550	-0.011
TTM	0.431	0.596	-0.165
YOY	1.255	0.660	+0.595
5Y	0.990	0.668	+0.322
10Y	0.990	0.661	+0.329

Measures if Aussie Broadband Ltd is able to pay off Short-term Debt but only using the most liquid assets.

How to use quick ratio

Higher is better.
Above 1 is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use quick ratio in their analysis

Shows how fast Aussie Broadband Ltd can pay off its short term debts. This shows if Aussie Broadband Ltd can survive emergencies due to market changes or other reasons.

The three steps every investor should look at:

What is the current Quick Ratio?
The current most recent quarter (MRQ) quickRatio of Aussie Broadband Ltd is 0.54. This means that Aussie Broadband Ltd can pay off $0.54 for each $1 in debt (using most liquid assets).
How does it compare to the industry?
The mean MRQ Quick Ratio of the Telecom Services industry is 0.55.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Incorporates only most liquid assets.

How to calculate quick ratio

Quick ratio = cash and equivalents + marketable securities + accounts receivable / current liabilities

Real life example Aussie Broadband Ltd

You need the following data to determine operating ratio:

Balance sheet
Quick ratio = cash and short-term investments + short-term investments + netReceivables / total current liabilities
MRQ quick ratio Aussie Broadband Ltd: (33,659 + +35,221) / 127,890 = 0.54

The quick ratio measures the same thing as the current ratio, only it uses the most liquid assets a company has. Meaning, the assets that can be sold for cash the easiest and fastest.

As the quick ratio only incorporates the most liquid assets, you should also check the current ratio which also includes less liquid assets. But they may be harder to sell.

1.4. Solvency of Aussie Broadband Ltd.

1.3. Liquidity

1.4.1. Debt to Asset Ratio

Measures how much % of Aussie Broadband Ltd assets are financed with debt.

Below 1 (100%) is considered healthy but always compare Aussie Broadband Ltd to Telecom Services industry mean.
A Debt to Asset Ratio of 0.57 means that Aussie Broadband Ltd assets are financed with 56.5% credit (debt) and the remaining percentage (100% - 56.5%) is financed by its owners/shareholders.

Let's take a look of the Debt to Asset Ratio trends of Aussie Broadband Ltd:

The MRQ is 0.565. The company is able to pay all its debts by selling its assets. +1
The TTM is 0.483. The company is very able to pay all its debts by selling its assets. +2

Trends

Current period		Compared to		+/-
MRQ	0.565	TTM	0.483	+0.083
TTM	0.483	YOY	0.444	+0.039
TTM	0.483	5Y	0.464	+0.019
5Y	0.464	10Y	0.464	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	0.565	0.637	-0.072
TTM	0.483	0.637	-0.154
YOY	0.444	0.635	-0.191
5Y	0.464	0.643	-0.179
10Y	0.464	0.645	-0.181

Measures how much % of Aussie Broadband Ltd assets are financed with debt.

When there are more debts than assets, that means creditors have a larger stake Aussie Broadband Ltd than its shareholders.

How to use debt to asset ratio

Lower is better.
below 1 (100%) is considered healthy but always compare Aussie Broadband Ltd to Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use the debt to asset ratio in their analysis

It shows how much debt the company used to finance its assets. If a company is almost entirely financed with debt that means the company might get into serious trouble when emergencies arise like a raise in interest.

The three steps every investor should look at:

What is the current debt to asset ratio?
The current most recent quarter (MRQ) Debt to Asset Ratio of Aussie Broadband Ltd is 0.57. This means means that Aussie Broadband Ltd is financed with 56.5% credit and the remaining percentage is financed by it's owners (shareholders).
How does it compare to the industry?
The mean MRQ Current Ratio of the Telecom Services industry is 94.7%.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry
Some companies can have higher debt to assets ratio's (for example, banks).
Debt to asset ratio should improve over the years.
If the debt to asset ratio is above 1, look at the industry mean and find out why Aussie Broadband Ltd has so much debt.

How to calculate debt to asset ratio

Debt to asset ratio = total debt \ total assets

Real life example Aussie Broadband Ltd

You need the following data to determine debt to asset ratio:

Balance sheet
Debt to asset ratio = total debt \ total assets
361,809 \ 639,866 = 56.5% or 0.57.

The debt to total assets ratio shows if the company is owned by creditors or shareholders. Or in other words, the total debt in relation to the total amount of assets. It shows how much debt the company used to finance its assets.

1.4.2. Debt to Equity Ratio

Measures if Aussie Broadband Ltd is able to pay off its debts by using shareholders equity.

Below 2 is considered healthy but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
A Debt to Equity ratio of 130.1% means that company has $1.30 debt for each $1 in shareholders equity.

Let's take a look of the Debt to Equity Ratio trends of Aussie Broadband Ltd:

The MRQ is 1.301. The company is able to pay all its debts with equity. +1
The TTM is 1.030. The company is able to pay all its debts with equity. +1

Trends

Current period		Compared to		+/-
MRQ	1.301	TTM	1.030	+0.271
TTM	1.030	YOY	0.829	+0.201
TTM	1.030	5Y	0.918	+0.112
5Y	0.918	10Y	0.918	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	1.301	1.685	-0.384
TTM	1.030	1.733	-0.703
YOY	0.829	1.694	-0.865
5Y	0.918	1.800	-0.882
10Y	0.918	1.729	-0.811

Measures if Aussie Broadband Ltd is able to pay off its debts by using shareholders equity.

How to use debt to equity ratio

Lower is better.
Below 2 is considered healthy (always use industry average).
Can be very different between industries.
Can be used to compare companies.

Why do investors use the debt to shareholders equity ratio in their analysis

It shows how much debt the company uses to finance their operations. Shareholders equity is whats left over when you subtract total liabilities from total assets. It's another way to meassure how much of Aussie Broadband Ltd is financed with debt or own resources.

The three steps every investor should look at:

What is the current debt to equity ratio?
The current most recent quarter (MRQ) quickRatio of Aussie Broadband Ltd is 1.30. This means that Aussie Broadband Ltd can pay off $1.30 for each $1 in debt.
How does it compare to the industry?
The mean MRQ Quick Ratio of the Telecom Services industry is 1.69.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Not all debt is equally risky (for example, short term risk is less risky).

How to calculate debt to equity ratio

Debt to equity ratio = total debt \ shareholders equity.

Real life example Aussie Broadband Ltd

You need the following data to determine equity ratio:

Balance sheet
Debt to equity ratio = total debt \ shareholders equity
361,809 \ 278,057 = 1.30 or 130.1%

Debt to equity measures the total debt versus the total shareholders equity. While the total debts to total assets ratio uses total assets, the debt to equity ratio looks at the total equity of shareholders. Where equity of shareholders are:

Common shares.
Preferred shares.
Retained earnings.

You can find the shareholders' equity in the balance sheet. A ratio between 0,5 and 1,5 is preferred. If the ratio is above 1.5, that would indicate creditors have significantly more stake (debt) in the company than the shareholders. In other words, the company is using a lot of debt to finance their operations.

Not all debt is equally risky. Meaning you can adjust the ratio by including or excluding certain amounts of debt. Short term debts are less risky because they have to be paid back within one year anyway. It’s much easier to plan one year ahead versus five or ten years.

2. Market Valuation of Aussie Broadband Ltd

2. Earnings Per Share

2.1. Price to Earnings Ratio

Measures how much money you pay for each share for every $1 in earnings Aussie Broadband Ltd generates.

Above 15 is considered overpriced but always compare Aussie Broadband Ltd to the Telecom Services industry mean.
A PE ratio of 72.39 means the investor is paying $72.39 for every $1 in earnings.

Let's take a look of the Price to Earnings Ratio trends of Aussie Broadband Ltd:

The EOD is 77.665. Neutral. Compare to industry.
The MRQ is 72.395. Neutral. Compare to industry.
The TTM is 372.088. Seems overpriced? -1

Trends

Current period		Compared to		+/-
EOD	77.665	MRQ	72.395	+5.270
MRQ	72.395	TTM	372.088	-299.693
TTM	372.088	YOY	936.215	-564.128
TTM	372.088	5Y	596.343	-224.256
5Y	596.343	10Y	596.343	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
EOD	77.665	15.786	+61.879
MRQ	72.395	15.521	+56.874
TTM	372.088	16.094	+355.994
YOY	936.215	28.996	+907.219
5Y	596.343	29.046	+567.297
10Y	596.343	28.786	+567.557

Measures how much money you pay for each share for every $1 in earnings Aussie Broadband Ltd generates.

Indicates if the company’s shares are under or overvalued.

How to use PE ratio

Above 15 is considered overpriced but is hard to determine. Always compare Aussie Broadband Ltd to the Telecom Services industry mean.
Can be very different between industries.
Can be used to compare companies.

Why do investors use PE ratio in their analysis

The PE ratio tells investors the current sentiment in the market for that company. As with every stock, the stock price never shows the real valuation of a company but rather how the market thinks how much the stock is worth.

In other words, the current stock price also incorporates any future earnings or business opportunities in the future. The best example is the stock market crash in 2000. The PE ratio for any internet based company was going through the roof. Only based on the general assumption the internet and all associated businesses would thrive in the future. But this was based on nothing. A business still needs a good product or service to be able to survive. Instead, every investor bought any stock which did something related to the internet. Result: huge market crash.

Many investors were willing to pay premium prices and that was causing the PE ratio to rise. A high PE ratio is a warning sign that investors might be overvaluing a stock based on future earnings.

The three steps every investor should look at:

What is the current PE Ratio?
The current most recent quarter (MRQ) PE Ratio of Aussie Broadband Ltd is 72.39. This means the investor is paying $72.39 for every $1 in earnings.
How does it compare to the industry?
The mean MRQ Quick Ratio of the Telecom Services industry is 15.52.
What is the trend?
The trend is important because it shows you how Aussie Broadband Ltd is performing over time. The most recent quarter might be important if Aussie Broadband Ltd released a new product or service. And you can use MRQ to see if they performed better vs last year. You can find all the trends for Aussie Broadband Ltd up to 10 years back (depending if the company existed 10 years ago) when you exit this learning section.

Things to be aware of

Only compare with other companies in the same industry.
Some industries might have very high or very low PE ratios in general.
PE ratios can be high for several years, it does not mean a sudden collapse is imminent.
Earnings growth is not included in the PE ratio.

How to calculate PE ratio

PE ratio = market value per share \ earnings per share

Real life example Aussie Broadband Ltd

You need the following data to determine the PE ratio:

Balance sheet
Income statement

The PE ratio is a very commonly used ratio to determine the value of a company by comparing the current stock price relative to its earnings per share (EPS). Before we can calculate the PE ratio we need to know the EPS. EPS is calculated as follows:

EPS = (net profit - preferred dividends) \ end of period outstanding shares*
Net profit = revenue - expenses
8,569 \ 237,665 = EPS
PE ratio MRQ = 72.39

* The net profit minus preferred dividends can be found in the incomestatement as netIncomeApplicableToCommonShares.

The PE value helps investors to determine if the current stock price is under or overvalued. It also projects future growth.

In general, a higher PE ratio means that investors predict higher future growth. If the PE ratio is too high, then investors expect way too much future growth the company can never fulfil. This is most likely to happen in faster moving companies like tech companies or automobile companies like Tesla. These are hot and booming markets where investors expect much future growth driven by new technology (electric cars). When looking at the current MRQ (most recent quarter) PE ratio of Tesla ( jan. 2021) it's about 247 while the average in the industry is only 6. That might be a clue that Tesla is trading for way too high prices compared to their current assets and is more based on future growth.

2.2. Price Earnings to Growth Ratio

Measures the predicted future growth of Aussie Broadband Ltd.

Lower is better.
A PEG ratio of 1 means the market price of the stock and the expected future earnings are on par.

Let's take a look of the Price Earnings to Growth Ratio trends of Aussie Broadband Ltd:

The MRQ is 16.601. Seems overpriced? -1
The TTM is 214.911. Seems overpriced? -1

Trends

Current period		Compared to		+/-
MRQ	16.601	TTM	214.911	-198.310
TTM	214.911	YOY	2,279.456	-2,064.545
TTM	214.911	5Y	1,394.651	-1,179.740
5Y	1,394.651	10Y	1,394.651	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
MRQ	16.601	19.639	-3.038
TTM	214.911	26.859	+188.052
YOY	2,279.456	43.078	+2,236.378
5Y	1,394.651	80.875	+1,313.776
10Y	1,394.651	117.611	+1,277.040

PEG Ratio	Meaning
0.5	You can buy the stock cheap based on future growth
1	You pay a fair price based on future growth
2	The stock is overpriced based on future growth

2. Book Value per Share

2.3. Price to Book Ratio

Measures if the stock price of Aussie Broadband Ltd is to cheap or to expensive compared to its book value.

At or below 1 is considered healthy (always compare to Telecom Services industry mean).
A PB ratio of 2.23 means the investor is paying $2.23 for each $1 in book value.

Let's take a look of the Price to Book Ratio trends of Aussie Broadband Ltd:

The EOD is 2.393. Good. +1
The MRQ is 2.231. Good. +1
The TTM is 3.927. Neutral. Compare to industry.

Trends

Current period		Compared to		+/-
EOD	2.393	MRQ	2.231	+0.162
MRQ	2.231	TTM	3.927	-1.696
TTM	3.927	YOY	12.360	-8.433
TTM	3.927	5Y	8.776	-4.848
5Y	8.776	10Y	8.776	0.000

Compared to industry (Telecom Services)

Period	Company	Industry (mean)	+/-
EOD	2.393	1.344	+1.049
MRQ	2.231	1.495	+0.736
TTM	3.927	1.664	+2.263
YOY	12.360	2.030	+10.330
5Y	8.776	1.986	+6.790
10Y	8.776	2.412	+6.364

2. Total Gains per Share

3. Holders & Insider Transactions

Let's take a look at which institutions, funds and insiders are holding shares of Aussie Broadband Ltd.

4. Summary

4.1. Key Performance Indicators

The key performance indicators of Aussie Broadband Ltd compared to the Most Recent Quarter (MRQ).

	End of day	+/-	Most Recent Quarter	Trailing 12 Months	+/-	Year-Over-Year	+/-	5 Year	+/-	10 Year	+/-
Book Value Change Per Share	-	-	0.039	0.122	-68%	0.145	-73%	0.146	-73%	0.146	-73%
Book Value Growth	-	-	1.035	1.147	-10%	1.584	-35%	1.397	-26%	1.397	-26%
Book Value Per Share	-	-	1.170	1.035	+13%	0.381	+207%	0.606	+93%	0.606	+93%
Book Value Per Share Growth	-	-	1.035	1.147	-10%	1.584	-35%	1.397	-26%	1.397	-26%
Current Ratio	-	-	0.848	0.692	+23%	2.304	-63%	1.627	-48%	1.627	-48%
Debt To Asset Ratio	-	-	0.565	0.483	+17%	0.444	+27%	0.464	+22%	0.464	+22%
Debt To Equity Ratio	-	-	1.301	1.030	+26%	0.829	+57%	0.918	+42%	0.918	+42%
Dividend Per Share	-	-	-	-	0%	-	0%	-	0%	-	0%
Eps	-	-	0.036	0.018	+106%	0.008	+365%	0.008	+369%	0.008	+369%
Eps Growth	-	-	4.361	2.729	+60%	1.201	+263%	1.856	+135%	1.856	+135%
Free Cash Flow Per Share	-	-	-0.023	0.007	-413%	-0.004	-82%	0.001	-2729%	0.001	-2729%
Free Cash Flow Per Share Growth	-	-	-1.021	0.920	-211%	3.920	-126%	2.634	-139%	2.634	-139%
Free Cash Flow To Equity Per Share	-	-	-0.054	0.188	-129%	0.125	-143%	0.141	-138%	0.141	-138%
Free Cash Flow To Equity Per Share Growth	-	-	-0.175	0.714	-124%	4.342	-104%	2.788	-106%	2.788	-106%
Gross Profit Margin	-	-	1.000	1.000	0%	1.000	0%	1.000	0%	1.000	0%
Intrinsic Value_10Y_max	-	-	1.790	-	-	-	-	-	-	-	-
Intrinsic Value_10Y_min	-	-	1.497	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_max	-	-	0.051	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_min	-	-	0.050	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_max	-	-	0.251	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_min	-	-	0.237	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_max	-	-	0.569	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_min	-	-	0.519	-	-	-	-	-	-	-	-
Net Profit Margin	-	-	0.023	0.012	+94%	0.009	+144%	0.001	+3162%	0.001	+3162%
Operating Margin	-	-	-	0.007	-100%	0.005	-100%	0.007	-100%	0.007	-100%
Operating Ratio	-	-	0.651	0.446	+46%	0.360	+81%	0.439	+48%	0.439	+48%
Pb Ratio	2.393	+7%	2.231	3.927	-43%	12.360	-82%	8.776	-75%	8.776	-75%
Pe Ratio	77.665	+7%	72.395	372.088	-81%	936.215	-92%	596.343	-88%	596.343	-88%
Peg Ratio	-	-	16.601	214.911	-92%	2279.456	-99%	1394.651	-99%	1394.651	-99%
Price Per Share	2.800	+7%	2.610	3.747	-30%	3.825	-32%	3.566	-27%	3.566	-27%
Price To Total Gains Ratio	71.292	+7%	66.454	38.282	+74%	55.165	+20%	39.176	+70%	39.176	+70%
Profit Growth	-	-	2.180	1.864	+17%	1.600	+36%	1.714	+27%	1.714	+27%
Quick Ratio	-	-	0.539	0.431	+25%	1.255	-57%	0.990	-46%	0.990	-46%
Return On Assets	-	-	0.013	0.009	+50%	0.023	-41%	0.002	+592%	0.002	+592%
Return On Equity	-	-	0.031	0.019	+66%	0.044	-30%	0.004	+648%	0.004	+648%
Revenue Growth	-	-	1.193	0.597	+100%	-	+100%	0.298	+300%	0.298	+300%
Total Gains Per Share	-	-	0.039	0.122	-68%	0.145	-73%	0.146	-73%	0.146	-73%
Total Gains Per Share Growth	-	-	0.120	0.060	+100%	-	+100%	0.030	+300%	0.030	+300%
Usd Book Value	-	-	184991322.100	163593499.967	+13%	60318260.225	+207%	95885614.038	+93%	95885614.038	+93%
Usd Book Value Change Per Share	-	-	0.026	0.081	-68%	0.097	-73%	0.097	-73%	0.097	-73%
Usd Book Value Per Share	-	-	0.778	0.688	+13%	0.254	+207%	0.403	+93%	0.403	+93%
Usd Dividend Per Share	-	-	-	-	0%	-	0%	-	0%	-	0%
Usd Eps	-	-	0.024	0.012	+106%	0.005	+365%	0.005	+369%	0.005	+369%
Usd Free Cash Flow	-	-	-3583971.100	1144981.300	-413%	-639353.300	-82%	136303.338	-2729%	136303.338	-2729%
Usd Free Cash Flow Per Share	-	-	-0.015	0.005	-413%	-0.003	-82%	0.001	-2729%	0.001	-2729%
Usd Free Cash Flow To Equity Per Share	-	-	-0.036	0.125	-129%	0.083	-143%	0.094	-138%	0.094	-138%
Usd Price Per Share	1.863	+7%	1.736	2.493	-30%	2.545	-32%	2.373	-27%	2.373	-27%
Usd Profit	-	-	5700955.700	3207633.067	+78%	1837225.950	+210%	1251013.488	+356%	1251013.488	+356%
Usd Revenue	-	-	252142712.300	154485099.433	+63%	70213433.450	+259%	106132065.663	+138%	106132065.663	+138%
Usd Total Gains Per Share	-	-	0.026	0.081	-68%	0.097	-73%	0.097	-73%	0.097	-73%
	EOD	+2 -3	MRQ	TTM	+21 -18	YOY	+17 -22	5Y	+19 -20	10Y	+19 -20

4.2. Fundamental Score

Let's check the fundamental score of Aussie Broadband Ltd based on Penke's default stock scanner.

Penke's Stock Scanner

Indicator	Condition		Value
Price to Earnings Ratio (EOD)	Between	0-15	77.665
Price to Book Ratio (EOD)	Between	0-1	2.393
Net Profit Margin (MRQ)	Greater than	0	0.023
Operating Margin (MRQ)	Greater than	0	0.000
Quick Ratio (MRQ)	Greater than	1	0.539
Current Ratio (MRQ)	Greater than	1	0.848
Debt to Asset Ratio (MRQ)	Less than	1	0.565
Debt to Equity Ratio (MRQ)	Less than	1	1.301
Return on Equity (MRQ)	Greater than	0.15	0.031
Return on Assets (MRQ)	Greater than	0.05	0.013
Total			2/10 (20.0%)

Create your own Stock Scanner

Investing is personal. The best investors buy stocks based on their own analysis. Create your personal Stock Scanner with the key performance indicators that are important to you.
Create your own Stock Scanner

4.3. Technical Score

Let's check the technical score of Aussie Broadband Ltd based on Penke's default Symbol scanner.

Penke's Symbol Scanner

Indicator	Condition		Value
Open	Greater than	Close	2.740
Total			0/1 (0.0%)

Create your own Symbol Scanner

Trading is personal. The best traders buy and sell based on their own technical analysis. Create your personal Symbol Scanner with the technical indicators that are important to you.
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Latest Balance Sheet

Balance Sheet of 2022-12-31. Currency in AUD. All numbers in thousands.

Summary

Total Assets	639,866
Total Liabilities	361,809
Total Stockholder Equity	278,057

	As reported
Total Liabilities	361,809
Total Stockholder Equity	+ 278,057
Total Assets	= 639,866

Assets

Total Assets	639,866
Total Current Assets	108,424
Long-term Assets	108,424

Total Current Assets

Total Current Assets (as reported)	108,424
Net Receivables	35,221
Inventory	6,756
Other Current Assets	6,045
Total Current Assets (calculated)	48,022
+/-	60,402

Long-term Assets

Long-term Assets (as reported)	0
Property Plant Equipment	124,325
Goodwill	239,236
Intangible Assets	167,805
Long-term Assets (calculated)	531,366
+/-	531,366

Liabilities & Shareholders' Equity

Total Current Liabilities	127,890
Long-term Liabilities	-
Total Stockholder Equity	278,057

Total Current Liabilities

Total Current Liabilities (as reported)	127,890
Total Current Liabilities (calculated)	0
+/-	127,890

Long-term Liabilities

Long-term Liabilities (as reported)	0
Long term Debt Total	176,824
Long-term Liabilities (calculated)	176,824
+/-	176,824

Total Stockholder Equity

Total Stockholder Equity (as reported)	278,057
Common Stock	298,406
Retained Earnings	-20,349
Total Stockholder Equity (calculated)	278,057
+/-	0

Other

Cash And Equivalents	33,659
Cash and Short Term Investments	33,659
Common Stock Shares Outstanding	237,665
Liabilities and Stockholders Equity	639,866

Balance Sheet

Currency in AUD. All numbers in thousands.

Trend

2022-12-31

2022-06-30

2022-03-31

2021-12-31

2021-09-30

2021-06-30

2021-03-31

2020-12-31

2020-09-30

2019-09-30

> Total Assets

0
0
102,025
0
116,913
0
276,980
0
628,495
639,866

639,866

628,495

276,980

116,913

102,025

> Total Current Assets

0
71,987
71,987
81,490
81,490
199,611
199,611
103,642
103,642
108,424

108,424

103,642

199,611

81,490

71,987

Cash And Cash Equivalents

0
0
50,440
0
57,010
0
168,195
0
47,722
0

47,722

168,195

57,010

50,440

Short-term Investments

0
0
0
0
15
0
0
0
1,109
0

1,109

Net Receivables

0
16,490
16,490
16,948
16,948
23,296
23,296
39,343
39,343
35,221

35,221

39,343

23,296

16,948

16,490

Other Current Assets

0
0
1,955
0
15
0
0
0
1,109
6,045

6,045

1,109

1,955

> Long-term Assets

0
0
0
0
35,423
0
0
0
524,853
0

524,853

35,423

Property Plant Equipment

0
26,292
26,292
29,668
29,668
71,641
71,641
108,416
108,416
124,325

124,325

108,416

71,641

29,668

26,292

Goodwill

0
0
0
0
0
0
0
0
239,236
239,236

239,236

Long Term Investments

0
0
0
0
682
0
0
0
79
0

682

Intangible Assets

0
0
3,517
0
3,993
0
3,822
0
177,122
167,805

167,805

177,122

3,822

3,993

3,517

Other Assets

0
229
229
1,762
1,762
1,906
1,906
79
79
0

1,906

1,762

229

> Total Liabilities

0
0
49,370
0
57,366
0
86,076
0
359,773
361,809

361,809

359,773

86,076

57,366

49,370

> Total Current Liabilities

0
41,702
41,702
51,943
51,943
65,684
65,684
168,790
168,790
127,890

127,890

168,790

65,684

51,943

41,702

Short-term Debt

0
0
500
0
0
0
0
0
0
0

500

Short Long Term Debt

0
0
0
0
0
0
0
0
64,466
0

64,466

Accounts payable

0
18,878
18,878
18,507
18,507
32,416
32,416
34,929
34,929
0

34,929

32,416

18,507

18,878

Other Current Liabilities

0
14,160
14,160
17,066
17,066
19,940
19,940
34,203
34,203
0

34,203

19,940

17,066

14,160

> Long-term Liabilities

0
0
0
0
5,423
0
0
0
190,983
0

190,983

5,423

Long term Debt Total

0
0
7,375
0
5,075
0
19,920
0
139,838
176,824

176,824

139,838

19,920

5,075

7,375

Other Liabilities

0
293
293
348
348
472
472
51,145
51,145
0

51,145

472

348

293

> Total Stockholder Equity

0
0
52,655
0
59,547
0
190,904
0
268,722
278,057

278,057

268,722

190,904

59,547

52,655

Common Stock

0
94,323
94,323
95,088
95,088
224,707
224,707
298,288
298,288
298,406

298,406

298,288

224,707

95,088

94,323

Retained Earnings Total Equity

Accumulated Other Comprehensive Income

Capital Surplus

Treasury Stock

Other Stockholders Equity

0
154
154
308
308
655
655
962
962
0

962

655

308

154

Balance Sheet

Currency in AUD. All numbers in thousands.

	2022-06-30	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30
Accounts Payable	34,929	18,507	11,175	8,493	4,943	4,274
Capital Lease Obligations	42,693	10,564	11,550	-	-	-
Capital Stock	298,288	95,088	94,442	-	-	-
Cash	47,722	57,010	21,435	490	386	-
Cash And Equivalents	47,722	57,010	21,435	490	386	-
Cash And Short Term Investments	47,722	57,010	21,435	490	386	-
Common Stock	298,288	95,088	10,632	10,632	10,632	10,632
Common Stock Shares Outstanding	237,623	190,340	190,340	190,525	190,525	-
Good Will	239,236	-	-	-	-	-
Intangible Assets	177,122	3,993	2,458	1,417	1,106	-
Inventory	4,793	5,500	1,692	384	223	434
Liabilities And Stockholders Equity	628,495	116,913	57,532	20,009	7,102	-
Long Term Debt	109,514	-	-	-	-	-
Long Term Debt Total	139,838	5,075	7,541	2,750	81	-
Long Term Investments	79	682	228	-	-	-
Net Debt	126,258	-	-	-	-	-
Net Invested Capital	442,702	59,547	53,383	-	-	-
Net Receivables	39,343	16,948	11,389	7,470	2,708	1,084
Net Tangible Assets	-147,636	55,554	-23,181	-5,108	-4,522	-3,002
Net Working Capital	-65,148	29,547	35,180	-	-	-
Non Current Assets Total	524,853	35,423	20,478	-	-	-
Non Current Liabilities Total	190,983	5,423	7,775	-	-	-
Non Currrent Assets Other	-	-	-1	-	-	-
Other Assets	79	1,762	228	1,369	166	166
Other Current Assets	1,109	15	1,947	1,900	0	-
Other Current Liab	34,203	17,066	23,116	5,589	3,957	1,135
Other Liab	51,145	348	234	977	60	375
Other Stockholder Equity	962	308	-	1,955	-	-
Property Plant Equipment	108,416	29,668	17,793	7,987	2,203	2,466
Retained Earnings	-30,528	-35,849	-31,355	-12,864	-14,048	-12,967
Short Long Term Debt	64,466	-	5,500	-	-	-
Short Long Term Debt Total	-	5,075	7,541	2,750	81	-
Short Term Debt	0	0	27,238	5,500	350	-
Short Term Investments	1,109	15	1,947	-	-	-
Total Assets	628,495	116,913	57,532	20,009	7,102	-
Total Current Assets	103,642	81,490	37,053	11,213	3,626	1,834
Total Current Liabilities	168,790	51,943	70,480	16,219	10,377	6,826
Total Liab	359,773	57,366	78,255	28,433	10,517	-
Total Stockholder Equity	268,722	59,547	-20,723	-8,424	-3,416	-

	2022-12-31	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2019-09-30
Accounts Payable	-	34,929	34,929	32,416	32,416	18,507	18,507	18,878	18,878	-
Capital Lease Obligations	-	42,693	-	-	-	10,564	-	-	-	-
Capital Stock	-	298,288	-	-	-	95,088	-	-	-	-
Cash	-	47,722	-	168,195	-	57,010	-	50,440	-	-
Cash And Equivalents	33,659	47,722	-	168,195	-	57,010	-	50,440	-	-
Cash And Short Term Investments	33,659	47,722	-	168,195	-	57,010	-	50,440	-	-
Common Stock	298,406	298,288	298,288	224,707	224,707	95,088	95,088	94,323	94,323	-
Common Stock Shares Outstanding	237,665	237,623	-	139,100	-	190,340	-	209,340	-	-
Good Will	239,236	239,236	-	-	-	-	-	-	-	-
Intangible Assets	167,805	177,122	-	3,822	-	3,993	-	3,517	-	-
Inventory	6,756	4,793	4,793	4,266	4,266	5,500	5,500	1,865	1,865	-
Liabilities And Stockholders Equity	639,866	628,495	-	276,980	-	116,913	-	102,025	-	-
Long Term Debt	149,490	109,514	-	-	-	-	-	-	-	-
Long Term Debt Total	176,824	139,838	-	19,920	-	5,075	-	7,375	-	-
Long Term Investments	-	79	-	-	-	682	-	-	-	-
Net Debt	-	126,258	-	-	-	-	-	-	-	-
Net Invested Capital	-	442,702	-	-	-	59,547	-	-	-	-
Net Receivables	35,221	39,343	39,343	23,296	23,296	16,948	16,948	16,490	16,490	-
Net Tangible Assets	-	-147,636	-147,636	187,082	187,082	55,554	55,554	49,138	49,138	-5,108
Net Working Capital	-	-65,148	-	-	-	29,547	-	-	-	-
Non Current Assets Total	-	524,853	-	-	-	35,423	-	-	-	-
Non Current Liabilities Total	-	190,983	-	-	-	5,423	-	-	-	-
Other Assets	-	79	79	1,906	1,906	1,762	1,762	229	229	-
Other Current Assets	6,045	1,109	-	0	-	15	-	1,955	-	-
Other Current Liab	-	34,203	34,203	19,940	19,940	17,066	17,066	14,160	14,160	-
Other Liab	-	51,145	51,145	472	472	348	348	293	293	-
Other Stockholder Equity	-	962	962	655	655	308	308	154	154	-
Property Plant Equipment	124,325	108,416	108,416	71,641	71,641	29,668	29,668	26,292	26,292	-
Retained Earnings	-20,349	-30,528	-30,528	-34,458	-34,458	-35,849	-35,849	-41,822	-41,822	-
Short Long Term Debt	-	64,466	-	-	-	-	-	-	-	-
Short Long Term Debt Total	-	-	-	-	-	5,075	-	7,375	-	-
Short Term Debt	0	0	-	0	-	0	-	500	-	-
Short Term Investments	-	1,109	-	-	-	15	-	-	-	-
Total Assets	639,866	628,495	-	276,980	-	116,913	-	102,025	-	-
Total Current Assets	108,424	103,642	103,642	199,611	199,611	81,490	81,490	71,987	71,987	-
Total Current Liabilities	127,890	168,790	168,790	65,684	65,684	51,943	51,943	41,702	41,702	-
Total Liab	361,809	359,773	-	86,076	-	57,366	-	49,370	-	-
Total Stockholder Equity	278,057	268,722	-	190,904	-	59,547	-	52,655	-	-

Cash Flow

Currency in AUD. All numbers in thousands.

	2022-06-30	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30
Begin Period Cash Flow	57,010	21,435	-	-	-	-
Capital Expenditures	40,733	14,993	3,899	3,246	434	886
Change In Cash	-9,288	35,575	20,945	102	236	-287
Change In Working Capital	147	93	102	0	2	-
Change To Account Receivables	-4,519	-5,559	-3,961	-4,795	-1,656	-757
Change To Inventory	864	-3,808	-1,308	-161	210	-272
Change To Liabilities	8,370	15,355	9,436	5,186	3,167	2,474
Change To Netincome	1,741	15,097	8,889	39	39	39
Change To Operating Activities	1,745	1,133	637	89	86	117
Depreciation	17,323	7,003	5,067	1,152	901	1,133
Dividends Paid	-	-	-	120	120	120
End Period Cash Flow	47,722	57,010	21,435	-	-	-
Free Cash Flow	-4,680	8,150	-	-	-	-
Investments	-308,082	-17,132	-	-	-	-
Issuance Of Capital Stock	130,877	37,438	-	-	-	-
Net Borrowings	129,509	-11,492	19,538	5,150	-326	444
Net Income	5,321	-4,494	-12,299	-511	-1,081	-2,526
Other Cashflows From Financing Activities	619	1,478	-125	-1,900	-1,900	-1,900
Other Cashflows From Investing Activities	-265,613	1	63	4	0	-
Sale Purchase Of Stock	130,877	37,438	-	0	12	-
Total Cash From Financing Activities	261,005	27,424	19,413	3,130	-314	1,238
Total Cash From Operating Activities	37,789	25,283	6,897	1,412	1,626	168
Total Cashflows From Investing Activities	-308,082	-17,132	-5,365	-4,440	-1,077	-1,693

	2022-12-31	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2020-06-30	2019-12-31	2019-09-30
Capital Expenditures	31,234	7,958	7,958	12,409	12,409	3,432	3,432	4,065	4,065	5,428	944	944
Change In Cash	-14,063	-60,237	-60,237	55,593	55,593	3,285	3,285	14,503	14,503	20,945	10,209	10,209
Change In Working Capital	427	147	-	67	-	93	-	50	-	102	47	-
Change To Account Receivables	-	-2,260	-2,260	-2,260	-2,260	-2,780	-2,780	-2,780	-2,780	-	-	-
Change To Inventory	-	432	432	432	432	-1,904	-1,904	-1,904	-1,904	-	-	-
Change To Liabilities	-	4,185	4,185	0	0	7,678	7,678	0	0	-	0	0
Change To Netincome	-	-927	-927	1,797	1,797	-275	-275	7,823	7,823	-	223	223
Change To Operating Activities	-	873	873	873	873	567	567	567	567	-	-	-
Depreciation	-	5,651	5,651	3,011	3,011	1,828	1,828	1,674	1,674	-	1,247	1,247
Net Borrowings	-	67,236	67,236	-2,481	-2,481	-1,889	-1,889	-3,858	-3,858	-	10,691	10,691
Net Income	-	1,965	1,965	696	696	2,987	2,987	-5,234	-5,234	-	-677	-677
Other Cashflows From Financing Activities	-1	230	230	80	80	743	743	-4	-4	-125	-56	-56
Other Cashflows From Investing Activities	-1,244	-265,613	-	9	-	1	-	0	-	63	-	-
Sale Purchase Of Stock	0	130,877	-	129,619	-	37,438	-	37,438	-	-	-	-
Total Cash From Financing Activities	-7,432	68,095	68,095	62,408	62,408	-1,146	-1,146	14,858	14,858	19,413	10,635	10,635
Total Cash From Operating Activities	25,847	13,233	13,233	5,662	5,662	8,257	8,257	4,385	4,385	6,897	793	793
Total Cashflows From Investing Activities	-32,478	-141,564	-141,564	-12,478	-12,478	-3,827	-3,827	-4,740	-4,740	-5,365	-1,219	-1,219

Income Statement

Currency in AUD. All numbers in thousands.

	2022-06-30	2021-06-30	2020-06-30	2019-06-30	2018-06-30	2017-06-30
Cost Of Revenue	385,588	251,996	145,700	81,764	38,475	-
Ebit	15,336	11,470	-2,439	-19	-1,057	-2,766
Ebitda	35,125	5,663	-	-	-	-
Gross Profit	546,940	350,270	44,793	17,888	10,791	-
Income Before Tax	8,606	-4,154	-12,299	-4,889	-1,081	-
Income Tax Expense	3,285	340	-	-78	-	-
Interest Expense	2,476	2,257	0	0	0	0
Interest Income	149	93	9,860	860	24	-
Net Income	5,321	-4,494	-12,299	-4,889	-1,081	-
Net Income Applicable To Common Shares	5,321	-4,494	-12,299	-511	-1,081	-2,526
Net Income From Continuing Ops	5,321	-4,494	-	-	-	-
Net Interest Income	-2,327	-2,164	-	-	-	-
Operating Income	15,336	10,283	-2,439	-4,029	-1,057	-
Other Operating Expenses	-	-	-	6	2,424	1,376
Reconciled Depreciation	24,043	7,560	-	-	-	-
Selling General Administrative	119,680	74,711	40,432	15,474	8,523	-
Tax Provision	3,285	340	0	0	0	-
Total Other Income Expense Net	-4,403	-12,273	-	-	-	-
Total Revenue	546,940	350,270	190,493	99,652	49,266	-

	2022-12-31	2022-06-30	2022-03-31	2021-12-31	2021-09-30	2021-06-30	2021-03-31	2020-12-31	2020-09-30	2020-06-30	2019-12-31	2019-09-30
Cost Of Revenue	246,818	218,129	-	167,459	-	136,543	-	115,453	-	81,261	64,439	-
Ebit	-	6,782	6,782	886	886	3,265	3,265	1,877	1,877	-	719	719
Gross Profit	132,173	99,491	-	61,861	-	56,283	-	41,991	-	25,847	18,946	-
Income Before Tax	12,459	7,233	-	1,373	-	6,313	-	-10,467	-	-10,945	-1,354	-
Income Tax Expense	-	1,652	1,652	-9	-9	170	170	-	-	-	-	-
Interest Income	4,273	1,946	-	381	-	216	-	14,221	-	7,069	2,791	-
Net Income	8,569	3,930	-	1,391	-	5,973	-	-10,467	-	-10,945	-1,354	-
Net Income Applicable To Common Shares	8,569	1,965	1,965	696	696	2,987	2,987	-5,234	-5,234	-10,945	-677	-677
Operating Income	16,732	9,161	-	1,772	-	6,529	-	3,754	-	-3,876	1,437	-
Selling General Administrative	91,110	68,223	-	53,750	-	45,783	-	34,648	-	26,713	15,016	-
Tax Provision	3,890	3,303	-	-18	-	340	-	0	-	0	-	-
Total Revenue	378,991	317,620	-	229,320	-	192,826	-	157,444	-	107,108	83,385	-

Latest Income Statement (annual, 2022-06-30)

Gross Profit (+$)
totalRevenue	546,940
Cost of Revenue	-385,588
Gross Profit	546,940	161,352

Operating Income (+$)
Gross Profit	546,940
Operating Expense	--
Operating Income	15,336	546,940

Operating Expense (+$)
Research Development	-
Selling General Administrative	119,680
Selling And Marketing Expenses	-
Operating Expense	-	119,680

Net Interest Income (+$)
Interest Income	149
Interest Expense	-2,476
Other Finance Cost	-0
Net Interest Income	-2,327

Pretax Income (+$)
Operating Income	15,336
Net Interest Income	-2,327
Other Non-Operating Income Expenses	-
Income Before Tax (EBT)	8,606	19,739 EBIT - interestExpense = 12,860 8,606 7,797
Interest Expense	2,476
Earnings Before Interest and Taxes (EBIT)	15,336	11,082
Earnings Before Interest and Taxes (EBITDA)	35,125

After tax Income (+$)
Income Before Tax	8,606
Tax Provision	-3,285
Net Income From Continuing Ops	5,321	5,321
Net Income	5,321
Net Income Applicable To Common Shares	5,321

Non-recurring Events
Discontinued Operations	-
Extraordinary Items	-
Effect of Accounting Charges	-
Other Items	-
Non Recurring	-
Other Operating Expenses	-
Total Other Income/Expenses Net	-4,403	2,327

Technicals of Aussie Broadband Ltd

1. Trend Indicators

1.1 Moving Averages

Shows the moving average of the selected period.

Moving averages are lagging trend indicators.
There are many types of moving averages.
Moving averages are also used within other indicators.

Directionalities and relatives.

Moving Average	Amount of candles	Trend	Price +/-	vs. MA 50	vs. MA 100	vs. MA 200

Explanation: https://www.youtube.com/watch?v=xwW8h0lrQ-I

Shows the moving average of the selected period.

There are four types of indicators:

Trend indicators
Momentum indicators
Volatility indicators
Volume indicators

There are various kinds of moving averages:

Simple moving average (SMA);
Exponential moving average (EMA);
Smoothed moving average (SMMA);
Linear weighted moving average (LWMA).

The moving average looks at a certain period of time and it calculates the price average. The various types of averages are using various formulas. Don’t worry, you don’t have to memorize any formula. All moving averages are calculated automatically by basically every charting software you use. But it’s good to know how moving averages are actually calculated.

Simple moving average

SMA is calculated by summing up the price closures of the selected period. The price is then divided by the selected period. For example, when using the 21 day moving average you sum up all the closing prices for each day and divide that by 21. The result is a line on the chart representing the average. Because it’s an average in the selected timeframe, the trend is always lagging. An moving average looks like this on the chart:

Source: Tradingview.com

In this case, the blue line represents a 21 day moving average. Because the average is based on results from the past, the indicator will always lag behind. For example, when price would suddenly go up, the moving average won't immediately follow.

All other moving averages discussed below look the same on the chart. The only difference is that the line will move in different directions based on the maths behind the used indicators and the amount of days used to determine the average.

Exponential moving average

The EMA gives more weight to the latest closing prices by giving them more value in the equation. EMA is calculated by adding a certain percentage to the latest closing prices:

EMA = (CLOSE (i) * P) + (EMA (i - 1) * (1 - P))

Where:

CLOSE (i) = current period close price.
EMA (i - 1) = value of the Moving Average of a preceding period.
P = the percentage of using the price value.

Smoothed moving average

A smoothed moving average is an exponential moving average with a long lookback period. Older prices are reduced in weight but are never left out in the calculation. Unlike SMA and EMA where prices are removed when they are beyond the selected period. SMMA is a combination of the SMA and EMA. The main advantage is that it smooths out fluctuations in price.

Linear weighted moving average

The LWMA gives the latest price the highest weight and then lineary scales down with each price before that. The result is that the LWMA reacts quicker to changes in price than the SMA or EMA. The formula:

LWMA = ((Pn∗W1)+(Pn−1∗W2)+(Pn−2∗W3)...) / ∑W

Where:

P = Price for the period.
n = The most recent period, n-1 is the prior period, and n-2 is two periods prior.
W = The assigned weight to each period, with the highest weight going first and then descending linearly based on the number of periods being used.

Moving averages are widely used by many traders. Which moving average you need depends on your trading strategy. Common practise is using a combination of multiple periods. For example, the EMA21, EMA50, EMA100 and EMA200. How does that look on a chart:

Source: Tradingview.com

The lowest (purple) line on the chart represents the EMA200 then following up the EMA100, EMA50 and EMA21.

You can use moving averages to determine a trend. The 200 moving average is mostly used as a baseline for determining the current trend:

When the 200 moving average is moving up it is considered a bullish trend.
When the 200 moving average is down it is considered a bearish trend.
When moving averages are flatlined, there is no clear trend so you should look for market structure, consolidation or trend reversals. Depending on how you want to trade.

This is not set in stone. Most trading strategies use multiple moving averages each with different settings. While one strategy might use the EMA20, the other uses the SMA21. There can be hundreds of different variations. Moving averages can also be used as support and resistance. More often than not, prices will bounce on moving averages.

Aussie Broadband Ltd Daily Moving Averages Chart

1.2 Moving Average Convergence/Divergence (MACD)

Shows the momentum of the selected period based on two moving averages.

MACD is a lagging momentum indicator.
Uses two moving averages.
Can show buy or sell signals based on momentum.
Can show overbought. and oversold. levels.

Let's take a look of the Moving Average Convergence/Divergence (MACD) of Aussie Broadband Ltd:

Aussie Broadband Ltd Daily Moving Average Convergence/Divergence (MACD) Chart

1.3 Directional Movement Index (DMI)

The DMI is a collection of 3 indicators: +DI (Plus Direction Indicator), -DI (Minus Direction Indicator) and ADX (Average Directional Index).

The ADX helps you determine the strength of a trend. Let's take a look of the ADX of Aussie Broadband Ltd:

The ADX is .

Aussie Broadband Ltd Daily Directional Movement Index (DMI) Chart

1.4 Parabolic SAR

Shows the current trend and potential entry and exit signals.

Parabolic SAR (stop and reverse) is a lagging trend indicator.
Shows the current trend.
Shows potential entry signals.
Shows potential exit signals.
Can be used to place trailing stoplosses..

The Parabolic SAR is lower than the price. The current trend is up. +2

Aussie Broadband Ltd Daily Parabolic SAR Chart

2. Momentum Indicators

2.1 Relative Strength Index (RSI)

Measures the speed and change of price movements.

Leading momentum indicator, meaning the signals are instant.
Ranges between 0 and 100.
Above 70 is considered overbought.
Below 30 is considered oversold.
Above or below 50 can also be used to determine price trend or support and resistance.
RSI divergence looks at a deviation between RSI and price movement. Penketrading automatically calculates RSI divergences.
Can be used in many different ways

The RSI is below 50. -1
The RSI is below 30 and oversold. +2

Measures the speed and change of price movements.

There are four types of indicators:

Trend indicators
Momentum indicators
Volatility indicators
Volume indicators

The RSI measures the magnitude of recent price changes to determine if the asset is overbought or oversold.

Overbought (RSI above 70) means that the trading price is above its intrinsic value. This might indicate a sell or short signal.
Oversold (RSI below 30) means that the trading price is below its intrinsic value. This might indicate a buy or long signal.
RSI levels above or below 50 can also be used to determine a trend.
RSI divergence looks at a deviation between RSI and price movement.
Can be used in many different ways.

Original usage

Keep in mind that almost every indicator can be used in different ways. Even beyond the orginal settings. The relative strength index was developed by J. Welles Wilder. Wilder recommended a smoothing period of 14 days. That means a 14 day moving average (read more about this setting below). Another quote from the wikipedia page:

Wilders also considers the RSI 50 line as both support and resistance. I recommend to always read the original settings first before using an indicator. Many traders and websites are using their own version of the indicator which might be confusing.

How you can use RSI (Divergence)

First and foremost, there is no real right or wrong usage of the RSI indicator. You can use it in any way you want. Wilder recommends using a 14 day average but you can make it 50 or 100 if you like. Just keep in mind that using an indicator is just part of a larger trading plan. In other words, it’s not recommended to do any trading or investing based on a single indicator like the RSI.

The RSI is measured on a scale between 0 and 100. From 30 till 0 is considered oversold. and from 70 -100 is overbought. The RSI is a leading indicator, meaning the signals are instant.

I like to use the RSI as a trend\momentum indicator and not as an overbought or oversold indicator. I use the middle (50) as the baseline. When prices go above RSI 50 the trend is bullish and can indicate long positions. When below 50 it is considered bearish and can indicate short positions. Other traders use the 70 and 30 levels as overbought/oversold depending on the used strategy. The RSI indicator looks like this:

Source: Tradingview.com

The general concensus is that an RSI above 70 indicates that the security is overbought. In other words, the price this security is trading for is to high and should come down. So if RSI hits 70 or above this might indicate a sell signal or taking a short position (expecting the price will go down). Although RSI above 70 indicates the security is trading above it's fair value, that does not mean the price will go down.

Use tradingview to add indicators

I highly recommend using tradingview to add indicators to a chart. It has all the indicators you can think off and can add them for free (up to three indicators) to any chart you want. You can see that the levels 30 and 70 are marked with a dotted line. If you want you can remove these lines or give it another colour using Tradingview. You can also adjust the moving average used. You can also find RSI indicators made by the community that include other settings like RSI divergences.

Tradingview

Use Tradingview to (back)test your strategies and add hundreds of indicators created by the community.

View tool on Tradingview.com

RSI divergence

RSI is not only used to determine momentum but can also spot reversals or continuations of the trend. A reversal means that the trend is going in the opposite direction. From bullish to bearish or from bearish to bullish. These reversals can be spotted by looking at the price and the direction of the RSI. When the price is going up but the RSI is going down that means there is a divergence. This is also the case when RSI goes up but price is going down.

There are four types of divergences:

Regular bullish divergence
Regular bearish divergence
Hidden bullish divergence
Hidden bearish divergence

Regular bullish divergence

With a regular bullish divergence, the price is making lower highs but the oscillator (in this case the RSI) is making higher lows. A regular bullish divergence might indicate the end of the current trend. You’ll see regular bullish divergences mostly at the end of a downtrend. But that does not mean that every regular bullish divergence is a trend reversal.

Price is making lower highs
RSI is making higher lows
Indicating bullish reversal (price might go up)

Source: Tradingview.com

Regular bearish divergence

With a regular bearish divergence the price is making higher highs but the oscillator (in this case the RSI) is making lower highs. This might indicate the end of an uptrend.

Price is making higher highs
RSI is making lower highs
Indicating bearish reversal

Source: Tradingview.com

Hidden bullish divergence

With a hidden bullish divergence, the price is making a higher low while the RSI is making a lower low. This might indicate bullish trend continuation.

Price is making higher lows
RSI is making lower lows
Indicating bullish continuation

Source: Tradingview.com

As you have noticed, you can have multiple divergences in a row.

Hidden bearish divergence

With a hidden bearish divergence, price is making lower highs but RSI is making higher highs. This might indicate bearish trend continuation.

Price is making lower highs
RSI making higher highs
Indicating bearish continuation

Source: Tradingview.com

You can find many cheatsheets of RSI divergences online. Search for "RSI divergence overview" and you'll find a lot of examples. You can print these to learn the various types of divergences.