AOYAMA TRADING Return On Equity vs. Profit Margin
| 9B7 Stock | EUR 13.50 0.10 0.75% |
For AOYAMA TRADING profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AOYAMA TRADING to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AOYAMA TRADING utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AOYAMA TRADING's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AOYAMA TRADING over time as well as its relative position and ranking within its peers.
AOYAMA |
AOYAMA TRADING Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AOYAMA TRADING's current stock value. Our valuation model uses many indicators to compare AOYAMA TRADING value to that of its competitors to determine the firm's financial worth. AOYAMA TRADING is number one stock in return on equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.94 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for AOYAMA TRADING is roughly 1.06 . 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 AOYAMA TRADING's earnings, one of the primary drivers of an investment's value.AOYAMA Profit Margin 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.
AOYAMA TRADING |
| = | 0.0391 |
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.
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.
AOYAMA TRADING |
| = | 0.04 % |
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.
AOYAMA Profit Margin Comparison
AOYAMA TRADING is currently under evaluation in profit margin category among its peers.
AOYAMA TRADING Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AOYAMA TRADING, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AOYAMA TRADING will eventually generate negative long term returns. The profitability progress is the general direction of AOYAMA TRADING's change in net profit over the period of time. It can combine multiple indicators of AOYAMA TRADING, 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.
Aoyama Trading Co., Ltd. engages in business wear, casual wear, credit card, printing and media, sundry sales, repair service, and other businesses in Japan and internationally. Aoyama Trading Co., Ltd. was founded in 1964 and is headquartered in Tokyo, Japan. AOYAMA TRADING is traded on Frankfurt Stock Exchange in Germany.
AOYAMA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AOYAMA TRADING. 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 AOYAMA TRADING 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 AOYAMA TRADING's important profitability drivers and their relationship over time.
Use AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING will appreciate offsetting losses from the drop in the long position's value.AOYAMA TRADING Pair Trading
AOYAMA TRADING Pair Trading Analysis
The ability to find closely correlated positions to AOYAMA TRADING could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AOYAMA TRADING 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 AOYAMA TRADING - 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 AOYAMA TRADING to buy it.
The correlation of AOYAMA TRADING 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 AOYAMA TRADING moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING position
In addition to having AOYAMA TRADING 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 AOYAMA Stock
To fully project AOYAMA TRADING's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AOYAMA TRADING 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 AOYAMA TRADING's income statement, its balance sheet, and the statement of cash flows.