Collins Foods Return On Asset vs. Operating Margin
| 6CF Stock | EUR 5.30 0.05 0.95% |
For Collins Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Collins Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Collins Foods Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Collins Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Collins Foods Limited over time as well as its relative position and ranking within its peers.
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Collins Foods Limited Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Collins Foods's current stock value. Our valuation model uses many indicators to compare Collins Foods value to that of its competitors to determine the firm's financial worth. Collins Foods Limited is rated third in return on asset category among its peers. It also is rated third in operating margin category among its peers reporting about 1.59 of Operating Margin per Return On Asset. 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 Collins Foods' earnings, one of the primary drivers of an investment's value.Collins Operating Margin vs. Return On Asset
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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| = | 0.0464 |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Collins Operating Margin Comparison
Collins Foods is currently under evaluation in operating margin category among its peers.
Collins Foods Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Collins Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Collins Foods will eventually generate negative long term returns. The profitability progress is the general direction of Collins Foods' change in net profit over the period of time. It can combine multiple indicators of Collins Foods, 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.
Collins Foods Limited engages in the operation, management, and administration of restaurants in Australia, Europe, and Asia. Collins Foods Limited was founded in 1969 and is based in Hamilton, Australia. COLLINS FOODS operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15000 people.
Collins Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Collins Foods. 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 Collins Foods 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 Collins Foods' important profitability drivers and their relationship over time.
Use Collins Foods 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 Collins Foods 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 Collins Foods will appreciate offsetting losses from the drop in the long position's value.Collins Foods Pair Trading
Collins Foods Limited Pair Trading Analysis
The ability to find closely correlated positions to Collins Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Collins Foods 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 Collins Foods - 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 Collins Foods Limited to buy it.
The correlation of Collins Foods 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 Collins Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Collins Foods Limited 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 Collins Foods 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 Collins Foods position
In addition to having Collins Foods 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 ESG Investing Thematic Idea Now
ESG Investing
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Other Information on Investing in Collins Stock
To fully project Collins Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Collins Foods Limited 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 Collins Foods' income statement, its balance sheet, and the statement of cash flows.