Shopify Cost Of Revenue vs Income Before Tax Analysis
SHOP Stock | CAD 149.48 0.67 0.45% |
Shopify financial indicator trend analysis is much more than just breaking down Shopify prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Shopify is a good investment. Please check the relationship between Shopify Cost Of Revenue and its Income Before Tax accounts. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. 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. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.
Cost Of Revenue vs Income Before Tax
Cost Of Revenue vs Income Before Tax Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Shopify Cost Of Revenue account and Income Before Tax. At this time, the significance of the direction appears to have weak contrarian relationship.
The correlation between Shopify's Cost Of Revenue and Income Before Tax is -0.08. Overlapping area represents the amount of variation of Cost Of Revenue that can explain the historical movement of Income Before Tax in the same time period over historical financial statements of Shopify, assuming nothing else is changed. The correlation between historical values of Shopify's Cost Of Revenue and Income Before Tax is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cost Of Revenue of Shopify are associated (or correlated) with its Income Before Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Income Before Tax has no effect on the direction of Cost Of Revenue i.e., Shopify's Cost Of Revenue and Income Before Tax go up and down completely randomly.
Correlation Coefficient | -0.08 |
Relationship Direction | Negative |
Relationship Strength | Insignificant |
Cost Of Revenue
Cost of Revenue is found on Shopify income statement and represents the costs associated with goods and services Shopify provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities.Income Before Tax
Income Before Tax which can also be referred as pre-tax income is reported on Shopify income statement and is an important metric when analyzing Shopify profitability. Accounting techniques because taxes can be complex, and not perfectly consistent from one company to company, an analyst may use pre-tax income as a more stable measure of profitability.Most indicators from Shopify's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Shopify 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. 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. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.At this time, Shopify's Selling General Administrative is very stable compared to the past year. As of the 23rd of November 2024, Tax Provision is likely to grow to about 55.6 M, while Issuance Of Capital Stock is likely to drop 0.00.
2021 | 2023 | 2024 (projected) | Interest Expense | 1.2M | 1.3M | 1.3M | Depreciation And Amortization | 66.3M | 70M | 37.9M |
Shopify fundamental ratios Correlations
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Shopify Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Shopify fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Common Stock Shares Outstanding | 957.7M | 1.1B | 1.1B | 1.3B | 1.3B | 1.2B | |
Total Assets | 3.5B | 7.8B | 13.3B | 10.8B | 11.3B | 11.9B | |
Short Long Term Debt Total | 151.7M | 912.9M | 1.2B | 1.4B | 1.2B | 1.2B | |
Other Current Liab | 69.4M | 19.7M | 13.5M | 9.4M | 215M | 225.8M | |
Total Current Liabilities | 316.4M | 438.3M | 702.7M | 856.0M | 898M | 942.9M | |
Total Stockholder Equity | 3.0B | 6.4B | 11.1B | 8.2B | 9.1B | 9.5B | |
Other Liab | 14.7M | 21.0M | 346.4M | 283.8M | 326.4M | 342.7M | |
Net Tangible Assets | 2.5B | 6.0B | 10.6B | 6.0B | 6.9B | 7.3B | |
Property Plant And Equipment Net | 246.2M | 211.5M | 301.9M | 486.0M | 147M | 160.9M | |
Current Deferred Revenue | 56.7M | 107.8M | 216.8M | 295.9M | 302M | 317.1M | |
Net Debt | (498.2M) | (1.8B) | (1.3B) | (252.7M) | (263M) | (276.2M) | |
Retained Earnings | (304.2M) | 15.3M | 2.9B | (522.3M) | (390M) | (370.5M) | |
Accounts Payable | 181.2M | 300.8M | 456.7M | 532.6M | 364M | 203.9M | |
Cash | 649.9M | 2.7B | 2.5B | 1.6B | 1.4B | 979.1M | |
Non Current Assets Total | 744.8M | 885.1M | 4.8B | 4.7B | 5.0B | 5.3B | |
Cash And Short Term Investments | 2.5B | 6.4B | 7.8B | 5.1B | 5.0B | 3.0B | |
Net Receivables | 240.7M | 421.5M | 668.0M | 857.9M | 1.2B | 1.2B | |
Common Stock Total Equity | 1.1B | 2.2B | 3.3B | 6.1B | 7.0B | 7.4B | |
Short Term Investments | 1.8B | 3.7B | 5.3B | 3.4B | 3.6B | 2.1B | |
Liabilities And Stockholders Equity | 3.5B | 7.8B | 13.3B | 10.8B | 11.3B | 11.9B | |
Non Current Liabilities Total | 157.4M | 923.9M | 1.5B | 1.7B | 1.3B | 1.4B | |
Other Current Assets | 48.8M | 68.2M | 103.3M | 139.7M | 20M | 19M | |
Other Stockholder Equity | 62.6M | 261.4M | 161.1M | 30.2M | 251M | 263.6M | |
Total Liab | 473.7M | 1.4B | 2.2B | 2.5B | 2.2B | 2.3B | |
Property Plant And Equipment Gross | 246.2M | 211.5M | 301.9M | 486.0M | 303M | 176.5M | |
Total Current Assets | 2.7B | 6.9B | 8.5B | 6.1B | 6.3B | 3.4B | |
Accumulated Other Comprehensive Income | 1.0M | 8.8M | (6.0M) | (16.5M) | 4M | 4.2M | |
Short Term Debt | 9.1M | 10.1M | 15.7M | 18.2M | 17M | 17.9M | |
Intangible Assets | 167.3M | 135.7M | 138.5M | 390.1M | 29M | 27.6M | |
Common Stock | 3.3B | 6.1B | 8.0B | 8.7B | 9.2B | 9.7B | |
Property Plant Equipment | 246.2M | 211.5M | 301.9M | 486.0M | 558.9M | 586.8M | |
Capital Surpluse | 62.6M | 261.4M | 161.1M | 30.2M | 34.7M | 33.0M | |
Non Currrent Assets Other | 87.9M | 125.7M | (2.5M) | (74K) | (66.6K) | (63.3K) | |
Capital Lease Obligations | 151.7M | 154.9M | 262.5M | 483.3M | 234M | 184.5M | |
Cash And Equivalents | 649.9M | 2.7B | 2.5B | 1.6B | 1.9B | 1.3B | |
Net Invested Capital | 3.0B | 7.2B | 12.0B | 9.2B | 10.0B | 7.0B |
Pair Trading with Shopify
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 Shopify 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 Shopify will appreciate offsetting losses from the drop in the long position's value.Moving against Shopify Stock
0.65 | DELX | DelphX Capital Markets Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify 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 Shopify - 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 Shopify to buy it.
The correlation of Shopify 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 Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify 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 Shopify 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.Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. 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. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.