Shopify Interest Expense vs Income Tax Expense 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 Interest Expense and its Income Tax Expense 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.

Interest Expense vs Income Tax Expense

Interest Expense vs Income Tax Expense Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Shopify Interest Expense account and Income Tax Expense. At this time, the significance of the direction appears to have no relationship.
The correlation between Shopify's Interest Expense and Income Tax Expense is 0.09. Overlapping area represents the amount of variation of Interest Expense that can explain the historical movement of Income Tax Expense in the same time period over historical financial statements of Shopify, assuming nothing else is changed. The correlation between historical values of Shopify's Interest Expense and Income Tax Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Interest Expense of Shopify are associated (or correlated) with its Income Tax Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Income Tax Expense has no effect on the direction of Interest Expense i.e., Shopify's Interest Expense and Income Tax Expense go up and down completely randomly.

Correlation Coefficient

0.09
Relationship DirectionPositive 
Relationship StrengthInsignificant

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Income Tax Expense

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 Expense1.2M1.3M1.3M
Depreciation And Amortization66.3M70M37.9M

Shopify fundamental ratios Correlations

0.670.650.390.660.680.570.670.610.62-0.450.150.670.630.60.680.620.470.690.690.650.450.540.570.650.66
0.670.980.60.971.00.930.980.790.95-0.550.330.920.850.950.910.940.630.970.920.980.680.720.80.980.86
0.650.980.550.970.970.910.930.810.96-0.510.220.930.850.940.880.930.730.950.871.00.720.750.750.990.88
0.390.60.550.710.60.650.520.180.710.0-0.230.330.240.670.330.80.130.670.360.530.8-0.040.740.60.36
0.660.970.970.710.960.940.910.780.99-0.390.120.880.740.970.810.980.690.970.830.970.820.660.770.990.87
0.681.00.970.60.960.930.990.780.94-0.570.360.910.860.940.920.930.60.970.930.970.660.710.810.980.85
0.570.930.910.650.940.930.890.660.96-0.250.320.810.630.990.730.930.590.850.770.930.780.580.650.940.76
0.670.980.930.520.910.990.890.760.88-0.660.470.90.90.90.950.860.540.940.960.940.550.720.810.940.82
0.610.790.810.180.780.780.660.760.74-0.490.20.930.760.720.810.660.890.780.810.820.460.960.40.810.96
0.620.950.960.710.990.940.960.880.74-0.290.10.860.680.980.760.990.70.930.780.960.870.620.730.980.84
-0.45-0.55-0.510.0-0.39-0.57-0.25-0.66-0.49-0.29-0.52-0.57-0.88-0.28-0.81-0.3-0.16-0.59-0.75-0.490.12-0.57-0.64-0.45-0.45
0.150.330.22-0.230.120.360.320.470.20.1-0.520.310.450.250.470.05-0.10.160.470.27-0.330.350.130.220.14
0.670.920.930.330.880.910.810.90.930.86-0.570.310.880.850.930.80.810.890.940.930.560.90.590.920.97
0.630.850.850.240.740.860.630.90.760.68-0.880.450.880.670.980.660.530.850.950.830.30.790.750.810.78
0.60.950.940.670.970.940.990.90.720.98-0.280.250.850.670.760.960.650.890.790.960.80.620.680.970.81
0.680.910.880.330.810.920.730.950.810.76-0.810.470.930.980.760.730.570.90.990.870.390.810.750.860.84
0.620.940.930.80.980.930.930.860.660.99-0.30.050.80.660.960.730.60.940.760.930.880.520.80.960.78
0.470.630.730.130.690.60.590.540.890.7-0.16-0.10.810.530.650.570.60.610.580.730.60.850.180.720.87
0.690.970.950.670.970.970.850.940.780.93-0.590.160.890.850.890.90.940.610.90.940.710.670.870.950.85
0.690.920.870.360.830.930.770.960.810.78-0.750.470.940.950.790.990.760.580.90.880.430.80.740.870.86
0.650.981.00.530.970.970.930.940.820.96-0.490.270.930.830.960.870.930.730.940.880.720.760.721.00.88
0.450.680.720.80.820.660.780.550.460.870.12-0.330.560.30.80.390.880.60.710.430.720.280.550.760.6
0.540.720.75-0.040.660.710.580.720.960.62-0.570.350.90.790.620.810.520.850.670.80.760.280.30.730.89
0.570.80.750.740.770.810.650.810.40.73-0.640.130.590.750.680.750.80.180.870.740.720.550.30.740.51
0.650.980.990.60.990.980.940.940.810.98-0.450.220.920.810.970.860.960.720.950.871.00.760.730.740.88
0.660.860.880.360.870.850.760.820.960.84-0.450.140.970.780.810.840.780.870.850.860.880.60.890.510.88
Click cells to compare fundamentals

Shopify Account Relationship Matchups

Shopify fundamental ratios Accounts

201920202021202220232024 (projected)
Common Stock Shares Outstanding957.7M1.1B1.1B1.3B1.3B1.2B
Total Assets3.5B7.8B13.3B10.8B11.3B11.9B
Short Long Term Debt Total151.7M912.9M1.2B1.4B1.2B1.2B
Other Current Liab69.4M19.7M13.5M9.4M215M225.8M
Total Current Liabilities316.4M438.3M702.7M856.0M898M942.9M
Total Stockholder Equity3.0B6.4B11.1B8.2B9.1B9.5B
Other Liab14.7M21.0M346.4M283.8M326.4M342.7M
Net Tangible Assets2.5B6.0B10.6B6.0B6.9B7.3B
Property Plant And Equipment Net246.2M211.5M301.9M486.0M147M160.9M
Current Deferred Revenue56.7M107.8M216.8M295.9M302M317.1M
Net Debt(498.2M)(1.8B)(1.3B)(252.7M)(263M)(276.2M)
Retained Earnings(304.2M)15.3M2.9B(522.3M)(390M)(370.5M)
Accounts Payable181.2M300.8M456.7M532.6M364M203.9M
Cash649.9M2.7B2.5B1.6B1.4B979.1M
Non Current Assets Total744.8M885.1M4.8B4.7B5.0B5.3B
Cash And Short Term Investments2.5B6.4B7.8B5.1B5.0B3.0B
Net Receivables240.7M421.5M668.0M857.9M1.2B1.2B
Common Stock Total Equity1.1B2.2B3.3B6.1B7.0B7.4B
Short Term Investments1.8B3.7B5.3B3.4B3.6B2.1B
Liabilities And Stockholders Equity3.5B7.8B13.3B10.8B11.3B11.9B
Non Current Liabilities Total157.4M923.9M1.5B1.7B1.3B1.4B
Other Current Assets48.8M68.2M103.3M139.7M20M19M
Other Stockholder Equity62.6M261.4M161.1M30.2M251M263.6M
Total Liab473.7M1.4B2.2B2.5B2.2B2.3B
Property Plant And Equipment Gross246.2M211.5M301.9M486.0M303M176.5M
Total Current Assets2.7B6.9B8.5B6.1B6.3B3.4B
Accumulated Other Comprehensive Income1.0M8.8M(6.0M)(16.5M)4M4.2M
Short Term Debt9.1M10.1M15.7M18.2M17M17.9M
Intangible Assets167.3M135.7M138.5M390.1M29M27.6M
Common Stock3.3B6.1B8.0B8.7B9.2B9.7B
Property Plant Equipment246.2M211.5M301.9M486.0M558.9M586.8M
Capital Surpluse62.6M261.4M161.1M30.2M34.7M33.0M
Non Currrent Assets Other87.9M125.7M(2.5M)(74K)(66.6K)(63.3K)
Capital Lease Obligations151.7M154.9M262.5M483.3M234M184.5M
Cash And Equivalents649.9M2.7B2.5B1.6B1.9B1.3B
Net Invested Capital3.0B7.2B12.0B9.2B10.0B7.0B

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

  0.65DELX DelphX Capital Markets Earnings Call This WeekPairCorr
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.
Pair CorrelationCorrelation Matching
When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Please note, there is a significant difference between Shopify's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shopify is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shopify'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.