Air France Revenue vs. Return On Asset
| AF Stock | EUR 7.26 0.23 3.07% |
For Air France profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Air France to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Air France KLM SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Air France's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Air France KLM SA over time as well as its relative position and ranking within its peers.
Air |
Air France KLM Return On Asset vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Air France's current stock value. Our valuation model uses many indicators to compare Air France value to that of its competitors to determine the firm's financial worth. Air France KLM SA is rated fourth in revenue category among its peers. It also is rated fourth in return on asset category among its peers . The ratio of Revenue to Return On Asset for Air France KLM SA is about 603,206,751,055 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Air France by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Air France's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Air Revenue vs. Competition
Air France KLM SA is rated fourth in revenue category among its peers. Market size based on revenue of Airlines industry is presently estimated at about 30.89 Billion. Air France totals roughly 14.3 Billion in revenue claiming about 46% of stocks in Airlines industry.
Air Return On Asset vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Air France |
| = | 14.3 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
Air France |
| = | 0.0237 |
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.
Air Return On Asset Comparison
Air France is rated third in return on asset category among its peers.
Air France Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Air France, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Air France will eventually generate negative long term returns. The profitability progress is the general direction of Air France's change in net profit over the period of time. It can combine multiple indicators of Air France, 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.
Air France-KLM SA, together with its subsidiaries, provides passenger transportation services on scheduled flights. The company was founded in 1919 and is headquartered in Paris, France. AIR FRANCE operates under Airlines classification in France and is traded on Paris Stock Exchange. It employs 75175 people.
Air Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Air France. 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 Air France 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 Air France's important profitability drivers and their relationship over time.
Use Air France 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 Air France 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 Air France will appreciate offsetting losses from the drop in the long position's value.Air France Pair Trading
Air France KLM SA Pair Trading Analysis
The ability to find closely correlated positions to Air France could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air France 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 Air France - 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 Air France KLM SA to buy it.
The correlation of Air France 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 Air France moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air France KLM 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 Air France 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 Air France position
In addition to having Air France 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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Utilities
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Other Information on Investing in Air Stock
To fully project Air France's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Air France KLM 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 Air France's income statement, its balance sheet, and the statement of cash flows.