ABB PAR Debt To Equity vs. Profit Margin
| ALZ Stock | EUR 12.70 0.10 0.78% |
For ABB PAR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ABB PAR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ABB PAR AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ABB PAR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ABB PAR AB over time as well as its relative position and ranking within its peers.
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ABB PAR AB Profit Margin vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ABB PAR's current stock value. Our valuation model uses many indicators to compare ABB PAR value to that of its competitors to determine the firm's financial worth. ABB PAR AB is number one stock in debt to equity category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.24 of Profit Margin per Debt To Equity. The ratio of Debt To Equity to Profit Margin for ABB PAR AB is roughly 4.12 . 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 ABB PAR's earnings, one of the primary drivers of an investment's value.ABB Profit Margin vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
ABB PAR |
| = | 0.46 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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.
ABB PAR |
| = | 0.11 % |
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.
ABB Profit Margin Comparison
ABB PAR is currently under evaluation in profit margin category among its peers.
ABB PAR Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ABB PAR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ABB PAR will eventually generate negative long term returns. The profitability progress is the general direction of ABB PAR's change in net profit over the period of time. It can combine multiple indicators of ABB PAR, 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.
ASSA ABLOY AB provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania. ASSA ABLOY AB was incorporated in 1954 and is based in Stockholm, Sweden. ABB PAR is traded on Frankfurt Stock Exchange in Germany.
ABB Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ABB PAR. 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 ABB PAR 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 ABB PAR's important profitability drivers and their relationship over time.
Use ABB PAR 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 ABB PAR 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 ABB PAR will appreciate offsetting losses from the drop in the long position's value.ABB PAR Pair Trading
ABB PAR AB Pair Trading Analysis
The ability to find closely correlated positions to ABB PAR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ABB PAR 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 ABB PAR - 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 ABB PAR AB to buy it.
The correlation of ABB PAR 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 ABB PAR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ABB PAR AB 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 ABB PAR 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 ABB PAR position
In addition to having ABB PAR 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 ABB Stock
To fully project ABB PAR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ABB PAR AB 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 ABB PAR's income statement, its balance sheet, and the statement of cash flows.