Constellation Gross Profit vs Operating Income Analysis
| CSU Stock | CAD 4,700 21.57 0.46% |
Constellation Software financial indicator trend analysis is way more than just evaluating Constellation Software prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Constellation Software is a good investment. Please check the relationship between Constellation Software Gross Profit and its Operating Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Constellation Software. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Gross Profit vs Operating Income
Gross Profit vs Operating Income Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Constellation Software Gross Profit account and Operating Income. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Constellation Software's Gross Profit and Operating Income is 0.53. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Operating Income in the same time period over historical financial statements of Constellation Software, assuming nothing else is changed. The correlation between historical values of Constellation Software's Gross Profit and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Gross Profit of Constellation Software are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Gross Profit i.e., Constellation Software's Gross Profit and Operating Income go up and down completely randomly.
Correlation Coefficient | 0.53 |
| Relationship Direction | Positive |
| Relationship Strength | Weak |
Gross Profit
Gross profit is a required income statement account that reflects total revenue of Constellation Software minus its cost of goods sold. It is profit before Constellation Software operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.Operating Income
Operating Income is the amount of profit realized from Constellation Software operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Constellation Software is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most indicators from Constellation Software's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Constellation Software current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Constellation Software. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. At this time, Constellation Software's Selling General Administrative is very stable compared to the past year. As of the 29th of November 2024, Enterprise Value Over EBITDA is likely to grow to 39.77, while Tax Provision is likely to drop about 149.9 M.
| 2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 4.6B | 5.9B | 2.9B | 1.7B | Total Revenue | 5.1B | 6.6B | 8.4B | 8.8B |
Constellation Software fundamental ratios Correlations
Click cells to compare fundamentals
Constellation Software Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Constellation Software fundamental ratios Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Total Assets | 3.5B | 4.4B | 5.8B | 7.9B | 10.9B | 11.4B | |
| Other Current Liab | 233M | 310M | 189M | 287M | 1.0B | 1.1B | |
| Total Current Liabilities | 1.7B | 2.0B | 2.5B | 3.8B | 5.5B | 5.8B | |
| Total Stockholder Equity | 687M | 1.0B | 1.1B | 1.7B | 1.9B | 2.0B | |
| Property Plant And Equipment Net | 60M | 307M | 334M | 411M | 445M | 467.3M | |
| Current Deferred Revenue | 788M | 962M | 1.2B | 1.5B | 1.8B | 1.8B | |
| Net Debt | 428M | (33M) | 624M | 1.5B | 2.4B | 2.5B | |
| Retained Earnings | 628M | 980M | 1.2B | 1.8B | 1.9B | 2.0B | |
| Accounts Payable | 529M | 666M | 832M | 1.1B | 1.4B | 1.5B | |
| Cash | 316M | 758M | 763M | 811M | 1.3B | 1.3B | |
| Non Current Assets Total | 2.4B | 2.8B | 3.9B | 5.4B | 7.6B | 7.9B | |
| Cash And Short Term Investments | 326M | 767M | 802M | 926M | 1.3B | 1.4B | |
| Net Receivables | 610M | 675M | 842M | 1.3B | 1.7B | 1.8B | |
| Good Will | 361M | 431M | 610M | 807M | 1.3B | 1.3B | |
| Liabilities And Stockholders Equity | 3.5B | 4.4B | 5.8B | 7.9B | 10.9B | 11.4B | |
| Non Current Liabilities Total | 1.1B | 1.3B | 1.8B | 2.2B | 3.4B | 3.6B | |
| Inventory | 31M | 27M | 35M | 48M | 51M | 29.6M | |
| Other Current Assets | 95M | 116M | 156M | 223M | 282M | 296.1M | |
| Other Stockholder Equity | (40M) | (31M) | (179M) | (150M) | (135M) | (128.3M) | |
| Total Liab | 2.8B | 3.3B | 4.2B | 5.9B | 8.9B | 9.4B | |
| Property Plant And Equipment Gross | 311M | 337M | 682M | 838M | 979M | 1.0B | |
| Total Current Assets | 1.1B | 1.6B | 1.8B | 2.5B | 3.3B | 3.5B | |
| Accumulated Other Comprehensive Income | (40M) | (31M) | (66M) | (150M) | (99M) | (94.1M) | |
| Short Term Debt | 182M | 102M | 282M | 917M | 1.2B | 1.3B | |
| Intangible Assets | 1.6B | 1.9B | 2.8B | 3.9B | 5.4B | 5.7B | |
| Property Plant Equipment | 60M | 307M | 334M | 411M | 472.7M | 496.3M | |
| Non Currrent Assets Other | 69M | 76M | 95M | 168M | 383M | 402.2M | |
| Other Assets | 1M | 126M | 163M | (1M) | (1.2M) | (1.1M) | |
| Short Long Term Debt Total | 744M | 725M | 1.4B | 2.3B | 3.7B | 3.9B | |
| Other Liab | 507M | 664M | 680M | 811M | 932.7M | 979.3M | |
| Net Tangible Assets | (690M) | (1.3B) | (1.3B) | (2.4B) | (2.1B) | (2.0B) | |
| Long Term Investments | 2.3M | 2.6M | 2M | 3M | 10M | 5.0M | |
| Short Long Term Debt | 120M | 28M | 203M | 821M | 1.1B | 1.1B | |
| Long Term Debt | 375M | 422M | 915M | 1.2B | 2.2B | 2.4B | |
| Long Term Debt Total | 562M | 623M | 1.1B | 1.4B | 1.6B | 1.7B | |
| Non Current Liabilities Other | 195M | 298M | 124M | 163M | 159M | 177.5M |
Pair Trading with Constellation Software
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Constellation Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Constellation Software will appreciate offsetting losses from the drop in the long position's value.Moving together with Constellation Stock
The ability to find closely correlated positions to Constellation Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Constellation Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Constellation Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Constellation Software to buy it.
The correlation of Constellation Software is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Constellation Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Constellation Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Constellation Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Constellation Stock
Balance Sheet is a snapshot of the financial position of Constellation Software at a specified time, usually calculated after every quarter, six months, or one year. Constellation Software Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of Constellation Software and are divided into current liabilities and long term liabilities. An asset, on the other hand, is anything of value that can be converted into cash and which Constellation currently owns. An asset can also be divided into two categories, current and non-current.