American Tower Profitability Analysis
| 0HEU Stock | 206.94 2.01 0.98% |
Net Income | First Reported 1997-03-31 | Previous Quarter 900.3 M | Current Value -792.3 M | Quarterly Volatility 277.7 M |
For American Tower profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Tower to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Tower REIT utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Tower's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Tower REIT over time as well as its relative position and ranking within its peers.
American |
American Tower REIT Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Tower's current stock value. Our valuation model uses many indicators to compare American Tower value to that of its competitors to determine the firm's financial worth. American Tower REIT is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about 0.25 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for American Tower REIT is roughly 3.98 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Tower's earnings, one of the primary drivers of an investment's value.American Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
American Tower |
| = | 0.18 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
American Tower |
| = | 0.0445 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
American Return On Asset Comparison
American Tower is currently under evaluation in return on asset category among its peers.
American Tower Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Tower, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Tower will eventually generate negative long term returns. The profitability progress is the general direction of American Tower's change in net profit over the period of time. It can combine multiple indicators of American Tower, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -5.7 B | -5.5 B | |
| Operating Income | 3 B | 3.2 B | |
| Income Before Tax | 1.5 B | 1.6 B | |
| Total Other Income Expense Net | -1.5 B | -1.4 B | |
| Net Income | 1.5 B | 1.6 B | |
| Income Tax Expense | 154.2 M | 161.9 M | |
| Interest Income | 1.1 B | 855.3 M | |
| Net Income Applicable To Common Shares | 2 B | 1.8 B | |
| Change To Netincome | 132.3 M | 260.2 M |
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Tower. 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 American Tower 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 American Tower's important profitability drivers and their relationship over time.
Use American Tower 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 American Tower 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 American Tower will appreciate offsetting losses from the drop in the long position's value.American Tower Pair Trading
American Tower REIT Pair Trading Analysis
The ability to find closely correlated positions to American Tower could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Tower 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 American Tower - 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 American Tower REIT to buy it.
The correlation of American Tower 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 American Tower moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Tower REIT 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 American Tower 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 American Tower position
In addition to having American Tower 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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Shipbuilding Railroad Equipment
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Additional Tools for American Stock Analysis
When running American Tower's price analysis, check to measure American Tower's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Tower is operating at the current time. Most of American Tower's value examination focuses on studying past and present price action to predict the probability of American Tower's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Tower's price. Additionally, you may evaluate how the addition of American Tower to your portfolios can decrease your overall portfolio volatility.