The Return on Invested Capital (aka ROIC) Score for Lumentum Holdings Inc. (NasdaqGS:LITE) is 5.263965. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).

Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Lumentum Holdings Inc. (NasdaqGS:LITE) over the past 52 weeks is 0.859000. The 52-week range can be found in the stock’s quote summary.

Lumentum Holdings Inc. (NasdaqGS:LITE) presently has a current ratio of 4.17. 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.

Lumentum Holdings Inc. (NasdaqGS:LITE)’s Leverage Ratio was recently noted as 0.389359. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.

The price to book ratio or market to book ratio for Lumentum Holdings Inc. (NasdaqGS:LITE) currently stands at 2.884061. The ratio is calculated by dividing the stock price per share by the book value per share. This ratio is used to determine how the market values the equity. A ratio of under 1 typically indicates that the shares are undervalued. A ratio over 1 indicates that the market is willing to pay more for the shares. There are often many underlying factors that come into play with the Price to Book ratio so all additional metrics should be considered as well.

**FCF**

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Lumentum Holdings Inc. (NasdaqGS:LITE) is 8.327612. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Lumentum Holdings Inc. (NasdaqGS:LITE) is 5.891369. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

**GM Score**

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Lumentum Holdings Inc. (NasdaqGS:LITE) is 50.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

**FCF**

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Lumentum Holdings Inc. (NasdaqGS:LITE) is 8.327612. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Lumentum Holdings Inc. (NasdaqGS:LITE) is 5.891369. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

**Rank**

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Lumentum Holdings Inc. (NasdaqGS:LITE) is 8513. The lower the ERP5 rank, the more undervalued a company is thought to be.

**Value**

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Lumentum Holdings Inc. (NasdaqGS:LITE) is 55. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Lumentum Holdings Inc. (NasdaqGS:LITE) is 65.

Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.

A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.

**Volatility**

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Lumentum Holdings Inc. (NasdaqGS:LITE) is 60.077900. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Lumentum Holdings Inc. (NasdaqGS:LITE) is 45.987400. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 77.928000.

Many individuals may have a tough time trying to figure out what actually drives financial markets. There are plenty of investing strategies and trading systems that individuals can use when trying to navigate the stock market. Sudden stock market moves can be mysterious, especially if the move goes against what professionals are expecting. When traders are just starting out, major market shifts can have the ability to wreak havoc if they are unprepared. Nobody wants to be on the losing end of a trade, but the reality is that it can happen at any time. Being prepared for the unknown isn’t easy, but it may be a good way to help ease the burden when markets get choppy.