Air Products Revenue vs. Return On Equity
| AP3 Stock | EUR 316.70 1.30 0.41% |
For Air Products profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Air Products to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Air Products and utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Air Products's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Air Products and over time as well as its relative position and ranking within its peers.
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Air Products Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Air Products's current stock value. Our valuation model uses many indicators to compare Air Products value to that of its competitors to determine the firm's financial worth. Air Products and is the top company in revenue category among its peers. It also is number one stock in return on equity category among its peers . The ratio of Revenue to Return On Equity for Air Products and is about 80,167,929,293 . 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 Air Products' earnings, one of the primary drivers of an investment's value.Air Revenue vs. Competition
Air Products and is the top company in revenue category among its peers. Market size based on revenue of Chemicals industry is presently estimated at about 663.25 Billion. Air Products claims roughly 12.7 Billion in revenue contributing just under 2% to stocks in Chemicals industry.
Air Return On Equity 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 Products |
| = | 12.7 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 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.
Air Products |
| = | 0.16 |
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.
Air Return On Equity Comparison
Air Products is currently under evaluation in return on equity category among its peers.
Air Products Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Air Products, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Air Products will eventually generate negative long term returns. The profitability progress is the general direction of Air Products' change in net profit over the period of time. It can combine multiple indicators of Air Products, 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 Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania. AIR PROD operates under Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 16000 people.
Air Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Air Products. 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 Products 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 Products' important profitability drivers and their relationship over time.
Use Air Products 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 Products 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 Products will appreciate offsetting losses from the drop in the long position's value.Air Products Pair Trading
Air Products and Pair Trading Analysis
The ability to find closely correlated positions to Air Products 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 Products 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 Products - 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 Products and to buy it.
The correlation of Air Products 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 Products moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Products 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 Products 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 Products position
In addition to having Air Products 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 Air Stock
When determining whether Air Products is a strong investment it is important to analyze Air Products' 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 Air Products' future performance. For an informed investment choice regarding Air Stock, refer to the following important reports:Check out Trending Equities. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
To fully project Air Products' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Air Products 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 Products' income statement, its balance sheet, and the statement of cash flows.