Live Nation Profit Margin vs. Return On Asset
| 3LN Stock | EUR 129.25 2.60 2.05% |
For Live Nation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Live Nation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Live Nation Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Live Nation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Live Nation Entertainment over time as well as its relative position and ranking within its peers.
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Live Nation Entertainment Return On Asset vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Live Nation's current stock value. Our valuation model uses many indicators to compare Live Nation value to that of its competitors to determine the firm's financial worth. Live Nation Entertainment is number one stock in profit margin category among its peers. It also is number one stock in return on asset category among its peers reporting about 1.73 of Return On Asset per Profit Margin. 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 Live Nation's earnings, one of the primary drivers of an investment's value.Live Return On Asset vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.02 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.
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| = | 0.0307 |
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.
Live Return On Asset Comparison
Live Nation is currently under evaluation in return on asset category among its peers.
Live Nation Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Live Nation, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Live Nation will eventually generate negative long term returns. The profitability progress is the general direction of Live Nation's change in net profit over the period of time. It can combine multiple indicators of Live Nation, 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.
Live Nation Entertainment, Inc. operates as a live entertainment company. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California. Live Nation operates under Media - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9500 people.
Live Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Live Nation. 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 Live Nation 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 Live Nation's important profitability drivers and their relationship over time.
Use Live Nation 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 Live Nation 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 Live Nation will appreciate offsetting losses from the drop in the long position's value.Live Nation Pair Trading
Live Nation Entertainment Pair Trading Analysis
The ability to find closely correlated positions to Live Nation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Live Nation 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 Live Nation - 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 Live Nation Entertainment to buy it.
The correlation of Live Nation 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 Live Nation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Live Nation Entertainment 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 Live Nation 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 Live Nation position
In addition to having Live Nation 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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Additional Information and Resources on Investing in Live Stock
When determining whether Live Nation Entertainment is a strong investment it is important to analyze Live Nation's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Live Nation's future performance. For an informed investment choice regarding Live Stock, refer to the following important reports:Check out Trending Equities. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Live Nation's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Live Nation Entertainment 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 Live Nation's income statement, its balance sheet, and the statement of cash flows.