Synchrony Financial Profitability Analysis
| 0LC3 Stock | 66.86 0.73 1.08% |
Net Income | First Reported 2013-03-31 | Previous Quarter 643 M | Current Value 768 M | Quarterly Volatility 248.6 M |
For Synchrony Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Synchrony Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Synchrony Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Synchrony Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Synchrony Financial over time as well as its relative position and ranking within its peers.
Synchrony |
Synchrony Financial Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Synchrony Financial's current stock value. Our valuation model uses many indicators to compare Synchrony Financial value to that of its competitors to determine the firm's financial worth. Synchrony Financial 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 0.13 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Synchrony Financial is roughly 7.79 . 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 Synchrony Financial's earnings, one of the primary drivers of an investment's value.Synchrony 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.
Synchrony Financial |
| = | 0.21 |
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.
Synchrony Financial |
| = | 0.0273 |
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.
Synchrony Return On Asset Comparison
Synchrony Financial is currently under evaluation in return on asset category among its peers.
Synchrony Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Synchrony Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Synchrony Financial will eventually generate negative long term returns. The profitability progress is the general direction of Synchrony Financial's change in net profit over the period of time. It can combine multiple indicators of Synchrony Financial, 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 | -68 M | -64.6 M | |
| Operating Income | 3.7 B | 4.9 B | |
| Income Before Tax | 2.9 B | 4 B | |
| Total Other Income Expense Net | -836 M | -877.8 M | |
| Net Income | 2.2 B | 2.8 B | |
| Income Tax Expense | 666 M | 632.7 M | |
| Net Interest Income | 12.8 B | 12.3 B | |
| Net Income Applicable To Common Shares | 3.4 B | 3.1 B | |
| Change To Netincome | 3.2 B | 3.7 B |
Synchrony Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Synchrony Financial. 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 Synchrony Financial 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 Synchrony Financial's important profitability drivers and their relationship over time.
Use Synchrony Financial 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 Synchrony Financial 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 Synchrony Financial will appreciate offsetting losses from the drop in the long position's value.Synchrony Financial Pair Trading
Synchrony Financial Pair Trading Analysis
The ability to find closely correlated positions to Synchrony Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Synchrony Financial 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 Synchrony Financial - 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 Synchrony Financial to buy it.
The correlation of Synchrony Financial 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 Synchrony Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Synchrony Financial 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 Synchrony Financial 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 Synchrony Financial position
In addition to having Synchrony Financial 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?
Run Gambling Thematic Idea Now
Gambling
Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Gambling Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Synchrony Stock Analysis
When running Synchrony Financial's price analysis, check to measure Synchrony Financial'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 Synchrony Financial is operating at the current time. Most of Synchrony Financial's value examination focuses on studying past and present price action to predict the probability of Synchrony Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Synchrony Financial's price. Additionally, you may evaluate how the addition of Synchrony Financial to your portfolios can decrease your overall portfolio volatility.