In trying to determine the current valuation of Growlife, Inc. (OTCPK:PHOT) shares, we note that the Book to Market ratio of the shares stands at -0.10618. It’s commonly accepted that a Book to Market ratio greater than one indicates that the shares might be undervalued. The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is calculated by dividing the market price per share by book value per share.
Growlife, Inc. (OTCPK:PHOT) presently has a current ratio of 0.08. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.
Return on Assets
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Growlife, Inc. (OTCPK:PHOT) is -9.945794. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
Growlife, Inc. (OTCPK:PHOT)’s Leverage Ratio was recently noted as 4.316392. This ratio is calculated by dividing total debt by total assets plus total