Encore Gross Profit vs Operating Income Analysis

ECPG Stock

USD 49.14 1.10 2.29%

Encore Capital financial indicator trend analysis is much more than just examining Encore Capital Group latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Encore Capital Group is a good investment. Please check the relationship between Encore Capital Gross Profit and its Operating Income accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

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 Encore Capital Group Gross Profit account and Operating Income. At this time, the significance of the direction appears to have very strong relationship.

The correlation between Encore Capital's Gross Profit and Operating Income is 0.86. 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 Encore Capital Group, assuming nothing else is changed. The correlation between historical values of Encore Capital'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 Encore Capital Group 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., Encore Capital's Gross Profit and Operating Income go up and down completely randomly.

Correlation Coefficient

0.86

Relationship Direction	Positive
Relationship Strength	Strong

View All Relationships

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Encore Capital Group minus its cost of goods sold. It is profit before Encore Capital 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 Encore Capital Group 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 Encore Capital Group 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 Encore Capital's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Encore Capital Group 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

At this time, Encore Capital's Enterprise Value Multiple is most likely to increase slightly in the upcoming years.

	2021	2022	2023	2024 (projected)
Gross Profit	928.0M	769.7M	571.2M	404.2M
Total Revenue	1.6B	1.4B	1.2B	717.3M

Gross Profit Total Revenue

Encore Capital fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Common Stock Total Equity	Other Current Assets	Common Stock	Other Liab	Other Assets	Long Term Debt
Total Assets		0.86	-0.42	0.43	0.77	0.86	0.98	0.84	0.8	0.88	0.68	-0.19	0.96	-0.05	0.67	0.99	-0.29	0.99	0.66	0.45	0.71	0.04	0.68	0.62	0.36	0.82
Short Long Term Debt Total	0.86		-0.76	0.49	0.69	0.57	0.89	0.58	0.93	0.91	0.84	0.16	0.84	0.03	0.59	0.88	-0.27	0.88	0.38	0.36	0.69	-0.07	0.67	0.24	-0.01	0.94
Other Current Liab	-0.42	-0.76		-0.25	-0.28	-0.04	-0.52	-0.08	-0.72	-0.54	-0.74	-0.54	-0.42	-0.28	-0.33	-0.47	0.15	-0.46	0.03	-0.28	-0.41	0.23	-0.47	0.29	0.44	-0.69
Total Current Liabilities	0.43	0.49	-0.25		0.35	0.26	0.42	0.27	0.51	0.42	0.35	0.0	0.35	0.3	0.51	0.38	0.02	0.44	0.11	0.41	0.49	0.11	0.45	0.06	0.06	0.53
Total Stockholder Equity	0.77	0.69	-0.28	0.35		0.68	0.74	0.86	0.52	0.76	0.71	0.06	0.69	-0.19	0.71	0.71	-0.58	0.7	0.58	0.15	0.66	-0.08	0.63	0.7	0.07	0.54
Property Plant And Equipment Net	0.86	0.57	-0.04	0.26	0.68		0.82	0.89	0.43	0.61	0.28	-0.6	0.78	-0.32	0.46	0.83	-0.28	0.84	0.89	0.21	0.54	0.01	0.47	0.73	0.72	0.53
Net Debt	0.98	0.89	-0.52	0.42	0.74	0.82		0.82	0.81	0.85	0.69	-0.16	0.92	-0.03	0.6	0.98	-0.33	0.98	0.68	0.44	0.65	0.08	0.62	0.54	0.33	0.81
Retained Earnings	0.84	0.58	-0.08	0.27	0.86	0.89	0.82		0.41	0.64	0.47	-0.32	0.75	-0.37	0.56	0.77	-0.6	0.77	0.84	0.12	0.5	0.04	0.46	0.83	0.46	0.43
Accounts Payable	0.8	0.93	-0.72	0.51	0.52	0.43	0.81	0.41		0.87	0.81	0.22	0.8	0.3	0.58	0.84	-0.06	0.84	0.16	0.57	0.64	0.12	0.64	0.19	-0.07	0.95
Cash	0.88	0.91	-0.54	0.42	0.76	0.61	0.85	0.64	0.87		0.83	0.13	0.93	0.02	0.63	0.89	-0.29	0.88	0.35	0.42	0.66	0.03	0.64	0.49	0.02	0.89
Non Current Assets Total	0.68	0.84	-0.74	0.35	0.71	0.28	0.69	0.47	0.81	0.83		0.59	0.7	0.13	0.67	0.68	-0.37	0.67	0.07	0.3	0.62	-0.05	0.67	0.24	-0.44	0.74
Non Currrent Assets Other	-0.19	0.16	-0.54	0.0	0.06	-0.6	-0.16	-0.32	0.22	0.13	0.59		-0.12	0.3	0.16	-0.18	-0.15	-0.19	-0.65	-0.02	0.03	-0.12	0.15	-0.36	-0.98	0.08
Cash And Short Term Investments	0.96	0.84	-0.42	0.35	0.69	0.78	0.92	0.75	0.8	0.93	0.7	-0.12		-0.06	0.61	0.96	-0.26	0.96	0.53	0.45	0.64	0.06	0.63	0.6	0.27	0.83
Net Receivables	-0.05	0.03	-0.28	0.3	-0.19	-0.32	-0.03	-0.37	0.3	0.02	0.13	0.3	-0.06		0.13	-0.01	0.33	0.0	-0.42	0.83	0.07	0.09	0.11	-0.18	-0.29	0.18
Common Stock Shares Outstanding	0.67	0.59	-0.33	0.51	0.71	0.46	0.6	0.56	0.58	0.63	0.67	0.16	0.61	0.13		0.62	-0.2	0.63	0.23	0.37	0.91	-0.09	0.93	0.39	-0.05	0.59
Non Current Liabilities Total	0.99	0.88	-0.47	0.38	0.71	0.83	0.98	0.77	0.84	0.89	0.68	-0.18	0.96	-0.01	0.62		-0.23	1.0	0.62	0.48	0.69	0.05	0.66	0.56	0.35	0.86
Other Stockholder Equity	-0.29	-0.27	0.15	0.02	-0.58	-0.28	-0.33	-0.6	-0.06	-0.29	-0.37	-0.15	-0.26	0.33	-0.2	-0.23		-0.22	-0.38	0.16	0.05	0.25	0.04	-0.47	0.07	-0.03
Total Liab	0.99	0.88	-0.46	0.44	0.7	0.84	0.98	0.77	0.84	0.88	0.67	-0.19	0.96	0.0	0.63	1.0	-0.22		0.62	0.49	0.7	0.06	0.67	0.55	0.36	0.86
Property Plant And Equipment Gross	0.66	0.38	0.03	0.11	0.58	0.89	0.68	0.84	0.16	0.35	0.07	-0.65	0.53	-0.42	0.23	0.62	-0.38	0.62		0.05	0.3	-0.02	0.23	0.64	0.75	0.24
Total Current Assets	0.45	0.36	-0.28	0.41	0.15	0.21	0.44	0.12	0.57	0.42	0.3	-0.02	0.45	0.83	0.37	0.48	0.16	0.49	0.05		0.33	0.14	0.32	0.26	0.11	0.5
Common Stock Total Equity	0.71	0.69	-0.41	0.49	0.66	0.54	0.65	0.5	0.64	0.66	0.62	0.03	0.64	0.07	0.91	0.69	0.05	0.7	0.3	0.33		-0.14	0.99	0.26	0.07	0.72
Other Current Assets	0.04	-0.07	0.23	0.11	-0.08	0.01	0.08	0.04	0.12	0.03	-0.05	-0.12	0.06	0.09	-0.09	0.05	0.25	0.06	-0.02	0.14	-0.14		-0.16	0.23	0.13	-0.07
Common Stock	0.68	0.67	-0.47	0.45	0.63	0.47	0.62	0.46	0.64	0.64	0.67	0.15	0.63	0.11	0.93	0.66	0.04	0.67	0.23	0.32	0.99	-0.16		0.22	-0.04	0.69
Other Liab	0.62	0.24	0.29	0.06	0.7	0.73	0.54	0.83	0.19	0.49	0.24	-0.36	0.6	-0.18	0.39	0.56	-0.47	0.55	0.64	0.26	0.26	0.23	0.22		0.47	0.16
Other Assets	0.36	-0.01	0.44	0.06	0.07	0.72	0.33	0.46	-0.07	0.02	-0.44	-0.98	0.27	-0.29	-0.05	0.35	0.07	0.36	0.75	0.11	0.07	0.13	-0.04	0.47		0.04
Long Term Debt	0.82	0.94	-0.69	0.53	0.54	0.53	0.81	0.43	0.95	0.89	0.74	0.08	0.83	0.18	0.59	0.86	-0.03	0.86	0.24	0.5	0.72	-0.07	0.69	0.16	0.04

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Encore Capital Account Relationship Matchups

Encore Capital fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	4.9B	4.9B	4.6B	4.5B	4.6B	4.9B
Short Long Term Debt Total	4.8B	3.3B	3.0B	4.0B	3.3B	1.8B
Other Current Liab	(1.2B)	(191.9M)	34.5M	(1.1B)	125.9M	132.1M
Total Current Liabilities	223.9M	215.9M	229.6M	198.2M	299.8M	150.0M
Total Stockholder Equity	1.0B	1.2B	1.2B	1.2B	936.5M	487.0M
Property Plant And Equipment Net	120.1M	127.3M	119.9M	113.9M	171.0M	179.5M
Net Debt	3.3B	3.1B	2.8B	3.8B	3.2B	3.3B
Retained Earnings	888.1M	1.1B	1.2B	1.3B	1.0B	1.1B
Accounts Payable	223.9M	192.7M	195.1M	180.4M	173.9M	114.8M
Cash	192.3M	189.2M	189.6M	143.9M	158.4M	83.4M
Non Current Assets Total	4.7B	4.7B	4.4B	4.4B	710.4M	674.9M
Non Currrent Assets Other	405.3M	316.0M	283.8M	323.0M	(3.6B)	(3.4B)
Cash And Short Term Investments	192.3M	189.2M	189.6M	143.9M	158.4M	180.8M
Net Receivables	45.0M	38.8M	22.6M	16.1M	9.1M	8.6M
Common Stock Shares Outstanding	31.5M	31.7M	31.2M	26.1M	23.7M	24.8M
Liabilities And Stockholders Equity	4.9B	4.9B	4.6B	4.5B	4.6B	4.9B
Non Current Liabilities Total	3.7B	3.4B	3.2B	3.1B	3.4B	3.6B
Other Stockholder Equity	(665.5M)	230.4M	(1.2B)	(1.3B)	11.1M	11.6M
Total Liab	3.9B	3.6B	3.4B	3.3B	3.7B	3.9B
Property Plant And Equipment Gross	195.3M	199.5M	119.9M	339.1M	340.1M	357.1M
Total Current Assets	192.3M	189.2M	189.6M	143.9M	209.1M	234.4M
Accumulated Other Comprehensive Income	(88.8M)	(68.8M)	(53.5M)	(98.8M)	(123.9M)	(117.7M)
Common Stock Total Equity	309K	311K	313K	233K	268.0K	243.9K
Other Current Assets	(237.3M)	62.6M	46.3M	48.6M	41.6M	43.7M
Common Stock	309K	311K	313K	233K	235K	244.5K
Other Liab	44.5M	146.9M	195.9M	111.2M	127.9M	134.2M
Other Assets	184.8M	349.2M	335.3M	341.1M	3.7B	3.9B
Long Term Debt	3.5B	2.3B	2.1B	1.8B	2.8B	1.5B
Short Term Debt	1.2B	215.2M	880.1M	1.1B	499.6M	600.0M
Property Plant Equipment	195.3M	127.3M	119.9M	113.9M	131.0M	137.5M
Good Will	884.2M	907.0M	897.8M	821.2M	606.5M	532.0M
Intangible Assets	51.4M	45.0M	36.3M	22.1M	48K	45.6K
Inventory	(2.5M)	42.2M	(3.5M)	(64.7M)	(17.3M)	(16.4M)
Net Tangible Assets	138.0M	310.6M	287.5M	358.4M	412.2M	432.8M
Noncontrolling Interest In Consolidated Entity	(9.9M)	1.7M	3.2M	2.5M	2.2M	2.3M
Retained Earnings Total Equity	888.1M	1.1B	1.2B	1.3B	1.5B	1.5B

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When determining whether Encore Capital Group is a strong investment it is important to analyze Encore Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Encore Capital's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:

How To Invest In Encore

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Is Encore Stock a good investment?

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What is Encore Capital's Net Worth?

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Largest Financial Services Companies

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Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Encore Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Encore Capital. If investors know Encore will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Encore Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.595

Earnings Share

(7.83)

Revenue Per Share

55.731

Quarterly Revenue Growth

0.186

Return On Assets

0.0425

The market value of Encore Capital Group is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Capital's value that differs from its market value or its book value, called intrinsic value, which is Encore Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Encore Capital's market value can be influenced by many factors that don't directly affect Encore Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Encore Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

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Encore Gross Profit vs Operating Income Analysis

Gross Profit vs Operating Income

Gross Profit vs Operating Income Correlation Analysis

Correlation Coefficient

Gross Profit

Operating Income

Encore Capital fundamental ratios Correlations

Encore Capital Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Encore Capital fundamental ratios Accounts

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COMPANY

Total Liab	+ 1.0	Non Current Liabilities Total
Non Current Liabilities Total	+ 0.99	Total Assets
Total Liab	+ 0.99	Total Assets
Common Stock	+ 0.99	Common Stock Total Equity
Net Debt	+ 0.98	Total Assets
Non Current Liabilities Total	+ 0.98	Net Debt

Other Assets	- 0.98	Non Currrent Assets Other
Other Current Liab	- 0.76	Short Long Term Debt Total
Non Current Assets Total	- 0.74	Other Current Liab
Accounts Payable	- 0.72	Other Current Liab
Long Term Debt	- 0.69	Other Current Liab
Property Plant And Equipment Gross	- 0.65	Non Currrent Assets Other