Hankook Furniture Price To Sales vs. Current Ratio
| 004590 Stock | KRW 4,055 40.00 0.98% |
For Hankook Furniture profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hankook Furniture to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hankook Furniture Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hankook Furniture's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hankook Furniture Co over time as well as its relative position and ranking within its peers.
Hankook |
Hankook Furniture Current Ratio vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hankook Furniture's current stock value. Our valuation model uses many indicators to compare Hankook Furniture value to that of its competitors to determine the firm's financial worth. Hankook Furniture Co is number one stock in price to sales category among its peers. It also is number one stock in current ratio category among its peers fabricating about 2.74 of Current Ratio per Price To Sales. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hankook Furniture by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hankook Furniture's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Hankook Current Ratio vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Hankook Furniture |
| = | 0.78 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Hankook Furniture |
| = | 2.15 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Hankook Furniture Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hankook Furniture, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hankook Furniture will eventually generate negative long term returns. The profitability progress is the general direction of Hankook Furniture's change in net profit over the period of time. It can combine multiple indicators of Hankook Furniture, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Hankook Furniture Co., Ltd. designs, manufactures and sells furniture in South Korea. The company was founded in 1966 and is based in Seoul, South Korea. KoreaFurni is traded on Korean Securities Dealers Automated Quotations in South Korea.
Hankook Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hankook Furniture. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hankook Furniture position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hankook Furniture's important profitability drivers and their relationship over time.
Use Hankook Furniture in pair-trading
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 Hankook Furniture 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 Hankook Furniture will appreciate offsetting losses from the drop in the long position's value.Hankook Furniture Pair Trading
Hankook Furniture Co Pair Trading Analysis
The ability to find closely correlated positions to Hankook Furniture could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hankook Furniture 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 Hankook Furniture - 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 Hankook Furniture Co to buy it.
The correlation of Hankook Furniture 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 Hankook Furniture moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hankook Furniture 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 Hankook Furniture 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.Use Investing Themes to Complement your Hankook Furniture position
In addition to having Hankook Furniture in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Hankook Stock
To fully project Hankook Furniture's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hankook Furniture at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hankook Furniture's income statement, its balance sheet, and the statement of cash flows.