Demetallica Ltd
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Quick analysis of Demetallica (30 sec.)

1. Valuation of Demetallica (5 min.)

Live pricePrice per share (EOD)

A$0.33

Book Value per Share

A$0.00

2. Growth of Demetallica (5 min.)

Is Demetallica growing?

	Current year	Previous year	Grow	Grow %
How rich?	$600.4k	$536.6k	-$4.7k	-0.9%

How much money is Demetallica making?

	Current year	Previous year	Grow	Grow %
Making money	-$235.6k	-$1m	$803.1k	?
Net Profit Margin	-180.2%	-1,150.8%	-	-

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

Quarterly Yearly

3. Financial Health of Demetallica (5 min.)

Fundamentals of Demetallica

Financial Health

Profitability Details

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

Operating Efficiency Details

	Compared to previous year	Compared to industry

Liquidity Details

	Compared to previous year	Compared to industry
The company is very able to pay all its short-term debts.
The company is very 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 very able to pay all its debts with equity.

1.1. Profitability of Demetallica Ltd.

1.1. Profitability

1.1.1. Net Profit Margin

Measures how much net profit Demetallica earns for each $1 of revenue.

Above 10% is considered healthy but always compare Demetallica to the industry mean.
A Net Profit Margin of 26.8% means that $0.27 for each $1 in revenue is generated as profit.

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

The MRQ is 26.8%. The company is making a huge profit. +2
The TTM is -180.2%. The company is making a huge loss. -2

Trends

Current period		Compared to		+/-
MRQ	26.8%	TTM	-180.2%	+206.9%
TTM	-180.2%	YOY	-1,150.8%	+970.7%
TTM	-180.2%	5Y	-614.6%	+434.4%
5Y	-614.6%	10Y	-614.6%	0.0%

Measures how much net profit Demetallica earns for each $1 of revenue.

Revenue is the amount of profit Demetallica 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 Demetallica 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 Demetallica to the industry mean.
Can be used to compare companies within the industry.

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

Why do investors use net profit margin in their analysis

It helps investors to determine the efficiency of Demetallica. If profit margins remain low (compared to the 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 Demetallica is 0.27. This means that Demetallica earned $0.27 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 industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica with other companies in the same industry ().
Net profit margin should rise over the years.
Can be influenced when Demetallica sells assets (profit will increase while costs remain the same).
It won’t show what part of Demetallica 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 Demetallica

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 Demetallica = 172
Total revenue MRQ Demetallica = 643
$172 / $643 = 0.27 or 26.8%

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 Demetallica is using its assets to generate profit.

Above 5% is considered healthy but always compare Demetallica to the industry mean.
12.7% Return on Assets means that Demetallica generated $0.13 profit for each $1 in assets.

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

The MRQ is 12.7%. Using its assets, the company is efficient in making profit. +1
The TTM is -22.6%. Using its assets, the company is very inefficient in making profit. -2

Trends

Current period		Compared to		+/-
MRQ	12.7%	TTM	-22.6%	+35.4%
TTM	-22.6%	YOY	-70.4%	+47.8%
TTM	-22.6%	5Y	-47.8%	+25.2%
5Y	-47.8%	10Y	-47.8%	0.0%

Shows how efficient Demetallica 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 Demetallica to the 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 Demetallica is using its resources to generate profit. If the return on assets (12.7%) from Demetallica are higher than the mean () that means Demetallica 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 Demetallica is 12.7%. This means the company generated $0.13 for each $1 in assets.
How does it compare to the industry?
The mean MRQ Return on Assets of the industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

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

Income statement
Balance sheet

Net income MRQ (income statement) from Demetallica = 172
Total assets MRQ (balance sheet) from Demetallica = 1,353
172 / 1,353 = 0.13 or 12.7%

ROA is an important ratio as it will tell you how effectively Demetallica 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 Demetallica is using its investors money to generate profit.

Above 15%-20% is considered healthy but always compare Demetallica to the industry mean.
19.1% Return on Equity means Demetallica generated $0.19 for each $1 the owners (shareholders) invested.

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

The MRQ is 19.1%. Using its investors money, the company is efficient in making profit. +1
The TTM is -53.7%. Using its investors money, the company is very inefficient in making profit. -2

Trends

Current period		Compared to		+/-
MRQ	19.1%	TTM	-53.7%	+72.8%
TTM	-53.7%	YOY	-219.4%	+165.7%
TTM	-53.7%	5Y	-125.7%	+72.0%
5Y	-125.7%	10Y	-125.7%	0.0%

Shows how efficient Demetallica 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 Demetallica to the 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 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 Demetallica is 19.1%. This means Demetallica generated $0.19 for each $1 the owners (shareholders) invested.
How does it compare to the industry?
The mean MRQ Return on Equity of the industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica up to 10 years back (depending if Demetallica 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 Demetallica

You need the following data to determine ROE:

Income statement
Balance sheet
Net profit MRQ (income statement) Demetallica = 172
Shareholders equity (balance sheet) MRQ Demetallica = 903
172 / 903 = 0.19 or 19.1%

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 Demetallica Ltd.

1.2. Operating Efficiency

1.2.1. Operating Margin

Measures how efficient Demetallica is operating .

Measures how much profit Demetallica 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 Demetallica to the 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 Demetallica Ltd:

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

Trends

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

Measures how efficient Demetallica 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 Demetallica to the 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 Demetallica 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 Demetallica is 0.0%. This means that Demetallica 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 industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

You need the following data to determine operating margin:

Income statement
Operating earnings MRQ Demetallica = -122
Total revenue MRQ Demetallica = 643
$-122 / $643 = 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 Demetallica is keeping operating costs low.

Below 1 is considered healthy (always compare to industry mean).
An Operation Ratio of 0.00 means that the operating costs are $0.00 for each $1 in net sales.

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

The MRQ is 0.000. The data is not here.

Trends

Current period		Compared to
MRQ	-	TTM	-
TTM	-	YOY	-
TTM	-	5Y	-
5Y	-	10Y	-

Measures how efficient Demetallica 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 Demetallica to the 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 Demetallica is 0.0%. This means that Demetallica earned $0.00 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 industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

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
( +) \ 643 = 0.00

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 Demetallica Ltd.

1.3. Liquidity

1.3.1. Current Ratio

Measures if Demetallica is able to pay off Short-term Debt.

Above 1.5 is considered healthy (always compare to industry mean).
A Current Ratio of 3.30 means the company has $3.30 in assets for each $1 in short-term debts.

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

The MRQ is 3.303. The company is very able to pay all its short-term debts. +2
The TTM is 3.530. The company is very able to pay all its short-term debts. +2

Trends

Current period		Compared to		+/-
MRQ	3.303	TTM	3.530	-0.226
TTM	3.530	YOY	2.964	+0.566
TTM	3.530	5Y	3.523	+0.007
5Y	3.523	10Y	3.523	0.000

Measures if Demetallica 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 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 Demetallica 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 Demetallica is 3.30. This means Demetallica has $3.30 in assets for each $1 in short-term debts.
How does it compare to the industry?
The mean MRQ Current Ratio of the industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

You need the following data to determine operating ratio:

Balance sheet
Current ratio = current assets \ current liabilities
1,189 \ 360) = 3.30

The current ratio measures if Demetallica 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 Demetallica 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 Demetallica 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 Demetallica 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 Demetallica is able to pay off Short-term Debt but only using the most liquid assets.

Above 1 is considered healthy but always compare Demetallica to the industry mean.
A Quick Ratio of 3.30 means the company can pay off $3.30 for each $1 in debt (using most liquid assets).

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

The MRQ is 3.303. The company is very able to pay all its short-term debts with the most liquid assets. +2
The TTM is 3.530. The company is very able to pay all its short-term debts with the most liquid assets. +2

Trends

Current period		Compared to		+/-
MRQ	3.303	TTM	3.530	-0.226
TTM	3.530	YOY	2.964	+0.566
TTM	3.530	5Y	3.523	+0.007
5Y	3.523	10Y	3.523	0.000

1.4. Solvency of Demetallica Ltd.

1.3. Liquidity

1.4.1. Debt to Asset Ratio

Measures how much % of Demetallica assets are financed with debt.

Below 1 (100%) is considered healthy but always compare Demetallica to industry mean.
A Debt to Asset Ratio of 0.33 means that Demetallica assets are financed with 33.3% credit (debt) and the remaining percentage (100% - 33.3%) is financed by its owners/shareholders.

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

The MRQ is 0.333. The company is very able to pay all its debts by selling its assets. +2
The TTM is 0.437. The company is very able to pay all its debts by selling its assets. +2

Trends

Current period		Compared to		+/-
MRQ	0.333	TTM	0.437	-0.104
TTM	0.437	YOY	0.649	-0.212
TTM	0.437	5Y	0.505	-0.069
5Y	0.505	10Y	0.505	0.000

Measures how much % of Demetallica assets are financed with debt.

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

How to use debt to asset ratio

Lower is better.
below 1 (100%) is considered healthy but always compare Demetallica to 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 Demetallica is 0.33. This means means that Demetallica is financed with 33.3% 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 industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica has so much debt.

How to calculate debt to asset ratio

Debt to asset ratio = total debt \ total assets

Real life example Demetallica

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

Balance sheet
Debt to asset ratio = total debt \ total assets
450 \ 1,353 = 33.3% or 0.33.

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 Demetallica is able to pay off its debts by using shareholders equity.

Below 2 is considered healthy but always compare Demetallica to the industry mean.
A Debt to Equity ratio of 49.9% means that company has $0.50 debt for each $1 in shareholders equity.

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

The MRQ is 0.499. The company is very able to pay all its debts with equity. +2
The TTM is 0.839. The company is very able to pay all its debts with equity. +2

Trends

Current period		Compared to		+/-
MRQ	0.499	TTM	0.839	-0.340
TTM	0.839	YOY	2.430	-1.591
TTM	0.839	5Y	1.418	-0.579
5Y	1.418	10Y	1.418	0.000

Measures if Demetallica 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 Demetallica 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 Demetallica is 0.50. This means that Demetallica can pay off $0.50 for each $1 in debt.
How does it compare to the industry?
The mean MRQ Quick Ratio of the industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

You need the following data to determine equity ratio:

Balance sheet
Debt to equity ratio = total debt \ shareholders equity
450 \ 903 = 0.50 or 49.9%

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 Demetallica 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 Demetallica generates.

Above 15 is considered overpriced but always compare Demetallica to the industry mean.
A PE ratio of 1,008.21 means the investor is paying $1,008.21 for every $1 in earnings.

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

The EOD is 832.812. Seems overpriced? -1
The MRQ is 1,008.208. Seems overpriced? -1
The TTM is 315.498. Seems overpriced? -1

Trends

Current period		Compared to		+/-
EOD	832.812	MRQ	1,008.208	-175.395
MRQ	1,008.208	TTM	315.498	+692.709
TTM	315.498	YOY	-275.707	+591.206
TTM	315.498	5Y	-7.929	+323.427
5Y	-7.929	10Y	-7.929	0.000

Measures how much money you pay for each share for every $1 in earnings Demetallica 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 Demetallica to the 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 Demetallica is 1,008.21. This means the investor is paying $1,008.21 for every $1 in earnings.
How does it compare to the industry?
The mean MRQ Quick Ratio of the industry is .
What is the trend?
The trend is important because it shows you how Demetallica is performing over time. The most recent quarter might be important if Demetallica 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 Demetallica 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 Demetallica

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
172 \ 434,854 = EPS
PE ratio MRQ = 1,008.21

* 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 Demetallica.

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 Demetallica Ltd:

The MRQ is 459.186. Seems overpriced? -1
The TTM is 65.156. Seems overpriced? -1

Trends

Current period		Compared to		+/-
MRQ	459.186	TTM	65.156	+394.031
TTM	65.156	YOY	-200.264	+265.419
TTM	65.156	5Y	-67.554	+132.710
5Y	-67.554	10Y	-67.554	0.000

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 Demetallica is to cheap or to expensive compared to its book value.

At or below 1 is considered healthy (always compare to industry mean).
A PB ratio of 192.48 means the investor is paying $192.48 for each $1 in book value.

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

The EOD is 158.991. Seems overpriced? -1
The MRQ is 192.475. Seems overpriced? -1
The TTM is 334.750. Seems overpriced? -1

Trends

Current period		Compared to		+/-
EOD	158.991	MRQ	192.475	-33.484
MRQ	192.475	TTM	334.750	-142.275
TTM	334.750	YOY	622.467	-287.717
TTM	334.750	5Y	402.526	-67.776
5Y	402.526	10Y	402.526	0.000

2. Total Gains per Share

3. Summary

3.1. Key Performance Indicators

The key performance indicators of Demetallica 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	-	-	0.000	0.001	-20%	-0.004	+886%	0.000	+14%	0.000	+14%
Book Value Growth	-	-	1.296	1.649	-21%	0.398	+226%	1.023	+27%	1.023	+27%
Book Value Per Share	-	-	0.002	0.002	+13%	0.002	0%	0.003	-36%	0.003	-36%
Book Value Per Share Growth	-	-	1.296	1.541	-16%	0.333	+289%	0.937	+38%	0.937	+38%
Current Ratio	-	-	3.303	3.530	-6%	2.964	+11%	3.523	-6%	3.523	-6%
Debt To Asset Ratio	-	-	0.333	0.437	-24%	0.649	-49%	0.505	-34%	0.505	-34%
Debt To Equity Ratio	-	-	0.499	0.839	-41%	2.430	-79%	1.418	-65%	1.418	-65%
Dividend Per Share	-	-	-	-	0%	-	0%	-	0%	-	0%
Eps	-	-	0.000	-0.001	+306%	-0.004	+1115%	-0.003	+935%	-0.003	+935%
Eps Growth	-	-	2.196	1.671	+31%	1.378	+59%	1.525	+44%	1.525	+44%
Free Cash Flow Per Share	-	-	-0.005	-0.004	-17%	-0.007	+39%	-0.006	+30%	-0.006	+30%
Free Cash Flow Per Share Growth	-	-	0.464	1.031	-55%	1.020	-55%	1.026	-55%	1.026	-55%
Free Cash Flow To Equity Per Share	-	-	-0.002	-0.001	-41%	-0.004	+93%	-0.002	-24%	-0.002	-24%
Free Cash Flow To Equity Per Share Growth	-	-	-3.300	-0.689	-79%	-0.447	-86%	-0.568	-83%	-0.568	-83%
Gross Profit Margin	-	-	1.000	1.000	0%	1.000	0%	1.000	0%	1.000	0%
Intrinsic Value_10Y_max	-	-	-0.566	-	-	-	-	-	-	-	-
Intrinsic Value_10Y_min	-	-	-0.475	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_max	-	-	-0.022	-	-	-	-	-	-	-	-
Intrinsic Value_1Y_min	-	-	-0.021	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_max	-	-	-0.092	-	-	-	-	-	-	-	-
Intrinsic Value_3Y_min	-	-	-0.087	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_max	-	-	-0.194	-	-	-	-	-	-	-	-
Intrinsic Value_5Y_min	-	-	-0.178	-	-	-	-	-	-	-	-
Net Profit Margin	-	-	0.268	-1.802	+772%	-11.508	+4396%	-6.146	+2394%	-6.146	+2394%
Operating Margin	-	-	-	-	0%	-	0%	-	0%	-	0%
Operating Ratio	-	-	-	-	0%	-	0%	-	0%	-	0%
Pb Ratio	158.991	-21%	192.475	334.750	-43%	622.467	-69%	402.526	-52%	402.526	-52%
Pe Ratio	832.812	-21%	1008.208	315.498	+220%	-275.707	+127%	-7.929	+101%	-7.929	+101%
Peg Ratio	-	-	459.186	65.156	+605%	-200.264	+144%	-67.554	+115%	-67.554	+115%
Price Per Share	0.330	-21%	0.400	0.582	-31%	1.046	-62%	0.815	-51%	0.815	-51%
Price To Total Gains Ratio	696.206	-21%	842.831	963.110	-12%	-289.998	+134%	288.884	+192%	288.884	+192%
Profit Growth	-	-	2.196	1.620	+36%	1.241	+77%	1.430	+53%	1.430	+53%
Quick Ratio	-	-	3.303	3.530	-6%	2.964	+11%	3.523	-6%	3.523	-6%
Return On Assets	-	-	0.127	-0.226	+278%	-0.704	+653%	-0.478	+476%	-0.478	+476%
Return On Equity	-	-	0.191	-0.537	+381%	-2.194	+1249%	-1.257	+759%	-1.257	+759%
Revenue Growth	-	-	2.827	1.617	+75%	2.813	+1%	2.215	+28%	2.215	+28%
Total Gains Per Share	-	-	0.000	0.001	-20%	-0.004	+886%	0.000	+14%	0.000	+14%
Total Gains Per Share Growth	-	-	0.672	1.485	-55%	0.463	+45%	0.974	-31%	0.974	-31%
Usd Book Value	-	-	600486.474	531920.656	+13%	536657.592	+12%	750805.687	-20%	750805.687	-20%
Usd Book Value Change Per Share	-	-	0.000	0.000	-20%	-0.002	+886%	0.000	+14%	0.000	+14%
Usd Book Value Per Share	-	-	0.001	0.001	+13%	0.001	0%	0.002	-36%	0.002	-36%
Usd Dividend Per Share	-	-	-	-	0%	-	0%	-	0%	-	0%
Usd Eps	-	-	0.000	-0.001	+306%	-0.003	+1115%	-0.002	+935%	-0.002	+935%
Usd Free Cash Flow	-	-	-1390337.287	-1147625.868	-17%	-1731147.192	+25%	-1533165.222	+10%	-1533165.222	+10%
Usd Free Cash Flow Per Share	-	-	-0.003	-0.003	-17%	-0.004	+39%	-0.004	+30%	-0.004	+30%
Usd Free Cash Flow To Equity Per Share	-	-	-0.001	-0.001	-41%	-0.003	+93%	-0.001	-24%	-0.001	-24%
Usd Price Per Share	0.220	-21%	0.266	0.387	-31%	0.696	-62%	0.542	-51%	0.542	-51%
Usd Profit	-	-	114637.843	-235662.566	+306%	-1038806.073	+1006%	-776119.021	+777%	-776119.021	+777%
Usd Revenue	-	-	427914.307	289641.682	+48%	219811.794	+95%	268588.263	+59%	268588.263	+59%
Usd Total Gains Per Share	-	-	0.000	0.000	-20%	-0.002	+886%	0.000	+14%	0.000	+14%
	EOD	+3 -2	MRQ	TTM	+17 -20	YOY	+30 -7	5Y	+24 -13	10Y	+24 -13

3.2. Fundamental Score

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

Penke's Stock Scanner

Indicator	Condition		Value
Price to Earnings Ratio (EOD)	Between	0-15	832.812
Price to Book Ratio (EOD)	Between	0-1	158.991
Net Profit Margin (MRQ)	Greater than	0	0.268
Operating Margin (MRQ)	Greater than	0	0.000
Quick Ratio (MRQ)	Greater than	1	3.303
Current Ratio (MRQ)	Greater than	1	3.303
Debt to Asset Ratio (MRQ)	Less than	1	0.333
Debt to Equity Ratio (MRQ)	Less than	1	0.499
Return on Equity (MRQ)	Greater than	0.15	0.191
Return on Assets (MRQ)	Greater than	0.05	0.127
Total			7/10 (70.0%)

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

3.3. Technical Score

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

Penke's Symbol Scanner

Indicator	Condition		Value
Rsi	Greater than	50	43.778
Ma 20	Greater than	Ma 50	0.330
Ma 50	Greater than	Ma 100	0.340
Ma 100	Greater than	Ma 200	0.308
Open	Greater than	Close	0.330
Total			1/5 (20.0%)

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.
Create your own Symbol Scanner

Reversals in quarterly reports

I have detected a reversal (positive to negative, negative to positive) in the following values of the quarterly reports.

		2011-06-30		2011-12-31		2012-06-30		2012-12-31		2013-06-30
Net Income		-2,002	-200	-2,201	1,280	-922	41	-881	1,053	172
Net Income Applicable to Common Shares		-2,002	-200	-2,201	1,280	-922	41	-881	1,053	172

Latest Balance Sheet

Balance Sheet of 2013-06-30. Currency in AUD. All numbers in thousands.

Summary

Total Assets	1,353
Total Liabilities	450
Total Stockholder Equity	903

	As reported
Total Liabilities	450
Total Stockholder Equity	+ 903
Total Assets	= 1,353

Assets

Total Assets	1,353
Total Current Assets	1,189
Long-term Assets	1,189

Total Current Assets

Total Current Assets (as reported)	1,189
Net Receivables	623
Total Current Assets (calculated)	623
+/-	567

Long-term Assets

Long-term Assets (as reported)	0
Property Plant Equipment	44
Long-term Assets (calculated)	44
+/-	44

Liabilities & Shareholders' Equity

Total Current Liabilities	360
Long-term Liabilities	-
Total Stockholder Equity	903

Total Current Liabilities

Total Current Liabilities (as reported)	360
Total Current Liabilities (calculated)	0
+/-	360

Long-term Liabilities

Long-term Liabilities (as reported)	0
Long-term Liabilities (calculated)	0
+/-	0

Total Stockholder Equity

Total Stockholder Equity (as reported)	903
Common Stock	97,363
Retained Earnings	-96,461
Total Stockholder Equity (calculated)	903
+/-	0

Other

Cash And Equivalents	567
Cash and Short Term Investments	567
Common Stock Shares Outstanding	434,854
Liabilities and Stockholders Equity	1,353

Balance Sheet

Currency in AUD. All numbers in thousands.

Trend

2013-06-30

2012-12-31

2012-06-30

2011-12-31

2011-06-30

> Total Assets

3,768
2,558
1,684
1,518
1,353

1,353

1,518

1,684

2,558

3,768

> Total Current Assets

3,305
2,205
1,349
1,311
1,189

1,189

1,311

1,349

2,205

3,305

Net Receivables

73
34
29
41
623

623

> Long-term Assets

Property Plant Equipment

105
79
71
60
44

105

> Total Liabilities

1,338
1,292
1,336
821
450

450

821

1,336

1,292

1,338

> Total Current Liabilities

714
667
514
349
360

360

349

514

667

714

> Long-term Liabilities

> Total Stockholder Equity

2,430
1,265
348
696
903

903

696

348

1,265

2,430

Common Stock

86,159
96,188
96,188
97,363
97,363

97,363

96,188

86,159

Retained Earnings

-96,461

-96,667

-95,840

-94,923

-83,729

Capital Surplus

Treasury Stock

Other Stockholders Equity

Balance Sheet

Currency in AUD. All numbers in thousands.

	2013-06-30	2012-06-30	2011-06-30	2010-06-30	2009-06-30	2008-06-30
Capital Surpluse	-	-	-	-	-379	536
Cash	367	385	709	2,438	94	277
Cash And Short Term Investments	567	1,320	3,231	2,459	2,864	8,507
Common Stock	97,363	96,188	86,159	82,544	79,290	77,390
Common Stock Shares Outstanding	434,854	388,164	291,101	239,273	179,455	180,751
Liabilities And Stockholders Equity	1,353	1,684	3,768	3,189	36,007	52,479
Long Term Debt	-	-	-	-	-	9,461
Long Term Debt Total	0	0	0	0	0	9,461
Other Assets	-	-	-	-	-	9,808
Property Plant Equipment	44	71	105	151	32,778	33,386
Retained Earnings	-96,461	-95,840	-83,729	-80,190	-43,738	-47,161
Short Term Debt	0	0	0	1	0	0
Short Term Investments	200	935	2,522	21	2,770	8,230
Total Assets	1,353	1,684	3,768	3,189	36,007	52,479
Total Current Assets	1,189	1,349	3,305	2,663	2,900	8,872
Total Current Liabilities	360	514	714	207	208	1,820
Total Liab	450	1,336	1,338	835	834	21,714
Total Stockholder Equity	903	348	2,430	2,354	35,173	30,765

	2013-06-30	2012-12-31	2012-06-30	2011-12-31	2011-06-30
Cash And Equivalents	567	1,270	1,320	2,170	3,231
Cash And Short Term Investments	567	1,270	1,320	2,170	3,231
Common Stock	97,363	97,363	96,188	96,188	86,159
Common Stock Shares Outstanding	434,854	434,854	388,164	388,164	291,101
Liabilities And Stockholders Equity	1,353	1,518	1,684	2,558	3,768
Long Term Debt Total	0	0	0	0	0
Net Receivables	623	41	29	34	73
Property Plant Equipment	44	60	71	79	105
Retained Earnings	-96,461	-96,667	-95,840	-94,923	-83,729
Short Term Debt	0	0	0	0	0
Total Assets	1,353	1,518	1,684	2,558	3,768
Total Current Assets	1,189	1,311	1,349	2,205	3,305
Total Current Liabilities	360	349	514	667	714
Total Liab	450	821	1,336	1,292	1,338
Total Stockholder Equity	903	696	348	1,265	2,430

Cash Flow

Currency in AUD. All numbers in thousands.

	2013-06-30	2012-06-30	2011-06-30	2010-06-30	2009-06-30	2008-06-30
Capital Expenditures	13	15	2	44	73	59
Change In Cash	-753	-1,912	772	-405	-5,643	-9,976
Change In Working Capital	48	123	179	125	279	976
Other Cashflows From Financing Activities	-23	-83	-220	-335	0	-
Other Cashflows From Investing Activities	162	86	26	230	-5,736	-9,137
Sale Purchase Of Stock	1,198	1,111	3,835	3,589	1,900	206
Total Cash From Financing Activities	1,175	1,029	3,614	3,243	1,900	206
Total Cash From Operating Activities	-2,077	-3,012	-2,866	-3,835	-1,734	-986
Total Cashflows From Investing Activities	149	71	24	187	-5,809	-9,196

	2013-06-30	2012-12-31	2012-06-30	2011-12-31	2011-06-30
Capital Expenditures	13	5	15	3	2
Change In Cash	-753	-50	-1,912	-1,061	772
Change In Working Capital	48	29	123	80	179
Other Cashflows From Financing Activities	-23	-10	-83	-83	-220
Other Cashflows From Investing Activities	162	122	86	88	26
Sale Purchase Of Stock	1,198	1,198	1,111	1,111	3,835
Total Cash From Financing Activities	1,175	1,188	1,029	1,029	3,614
Total Cash From Operating Activities	-2,077	-1,355	-3,012	-2,174	-2,866
Total Cashflows From Investing Activities	149	117	71	84	24

Income Statement

Currency in AUD. All numbers in thousands.

	2013-06-30	2012-06-30	2011-06-30	2010-06-30	2009-06-30	2008-06-30
Income Before Tax	-1,003	-3,123	-3,552	-4,138	-6,728	-5,857
Interest Income	-	-	-	-	5	1,585
Net Income	-708	-3,123	-3,552	-3,897	-6,728	-5,857
Net Income Applicable To Common Shares	-708	-3,123	-3,552	-3,897	-6,728	-5,857
Operating Income	-1,003	-3,123	-3,552	-4,138	-6,723	-4,272
Selling General Administrative	985	1,156	1,429	1,807	1,659	3,030
Tax Provision	-295	0	0	-241	0	0
Total Revenue	871	661	575	455	290	996

	2013-06-30	2012-12-31	2012-06-30	2011-12-31	2011-06-30
Income Before Tax	-122	-881	-922	-2,201	-2,002
Interest Income	-	-	-	-	0
Net Income	172	-881	-922	-2,201	-2,002
Net Income Applicable To Common Shares	172	-881	-922	-2,201	-2,002
Operating Income	-122	-881	-922	-2,201	-2,002
Selling General Administrative	470	515	460	697	625
Tax Provision	-295	0	0	0	0
Total Revenue	643	228	558	103	487

Latest Income Statement (annual, 2013-06-30)

Gross Profit (+$)
totalRevenue	871
Cost of Revenue	--
Gross Profit	-	871

Operating Income (+$)
Gross Profit	-
Operating Expense	--
Operating Income	-1,003	0

Operating Expense (+$)
Research Development	-
Selling General Administrative	985
Selling And Marketing Expenses	-
Operating Expense	-	985

Net Interest Income (+$)
Interest Income	-
Interest Expense	--
Other Finance Cost	-0
Net Interest Income	-

Pretax Income (+$)
Operating Income	-1,003
Net Interest Income	-
Other Non-Operating Income Expenses	-
Income Before Tax (EBT)	-1,003	-1,003 EBIT - interestExpense = 0 -708 -708
Interest Expense	-
Earnings Before Interest and Taxes (EBIT)	-	-1,003
Earnings Before Interest and Taxes (EBITDA)	-

After tax Income (+$)
Income Before Tax	-1,003
Tax Provision	--295
Net Income From Continuing Ops	-	-708
Net Income	-708
Net Income Applicable To Common Shares	-708

Non-recurring Events
Discontinued Operations	-
Extraordinary Items	-
Effect of Accounting Charges	-
Other Items	-
Non Recurring	-
Other Operating Expenses	-
Total Other Income/Expenses Net	-	0

Technicals of Demetallica

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	vs. MA 50	vs. MA 100	vs. MA 200
MA 20	20
MA 50	50	-
MA 100	100	-	-
MA 200	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.

Demetallica 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 Demetallica Ltd:

The Moving Average Convergence/Divergence (MACD) is -0.001. The Moving Average Convergence/Divergence (MACD) below zero is a bearish sign. -1
The MACD is higher than the signal line. This is a bullish indication. +1