Alterity Therapeutics Return On Equity vs. Operating Margin
| ATHE Stock | USD 1.06 0.01 0.95% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (1.39) | Current Value (1.32) | Quarterly Volatility 0.56539019 |
For Alterity Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alterity Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alterity Therapeutics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alterity Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alterity Therapeutics over time as well as its relative position and ranking within its peers.
Alterity |
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alterity Therapeutics. If investors know Alterity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alterity Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.86) | Revenue Per Share 0.6 | Quarterly Revenue Growth 0.384 | Return On Assets (0.53) | Return On Equity (1.04) |
The market value of Alterity Therapeutics is measured differently than its book value, which is the value of Alterity that is recorded on the company's balance sheet. Investors also form their own opinion of Alterity Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Alterity Therapeutics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alterity Therapeutics' market value can be influenced by many factors that don't directly affect Alterity Therapeutics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alterity Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Alterity Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alterity Therapeutics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Alterity Therapeutics Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alterity Therapeutics's current stock value. Our valuation model uses many indicators to compare Alterity Therapeutics value to that of its competitors to determine the firm's financial worth. Alterity Therapeutics is rated below average in return on equity category among its peers. It is rated third in operating margin category among its peers . At present, Alterity Therapeutics' Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Alterity Therapeutics by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Alterity Operating 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.
Alterity Therapeutics |
| = | -1.04 |
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.
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.
Alterity Therapeutics |
| = | (6.13) % |
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.
Alterity Operating Margin Comparison
Alterity Therapeutics is currently under evaluation in operating margin category among its peers.
Alterity Therapeutics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alterity Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alterity Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Alterity Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Alterity Therapeutics, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 4.8 M | 5 M | |
| Operating Income | -19.6 M | -18.6 M | |
| Net Loss | -19.1 M | -18.2 M | |
| Income Tax Expense | 46.1 K | 43.8 K | |
| Income Before Tax | -19.1 M | -18.1 M | |
| Total Other Income Expense Net | 524.3 K | 550.5 K | |
| Interest Income | 268.4 K | 514.6 K | |
| Net Loss | -19.1 M | -18.2 M | |
| Net Loss | -12.4 M | -13 M | |
| Net Interest Income | 268.4 K | 281.8 K | |
| Change To Netincome | 68 K | 71.4 K | |
| Net Loss | (0.01) | (0.01) | |
| Income Quality | 0.66 | 0.75 | |
| Net Income Per E B T | 1.00 | 0.79 |
Alterity Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alterity Therapeutics. 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 Alterity Therapeutics 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 Alterity Therapeutics' important profitability drivers and their relationship over time.
Use Alterity Therapeutics 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 Alterity Therapeutics 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 Alterity Therapeutics will appreciate offsetting losses from the drop in the long position's value.Alterity Therapeutics Pair Trading
Alterity Therapeutics Pair Trading Analysis
The ability to find closely correlated positions to Alterity Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alterity Therapeutics 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 Alterity Therapeutics - 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 Alterity Therapeutics to buy it.
The correlation of Alterity Therapeutics 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 Alterity Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alterity Therapeutics 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 Alterity Therapeutics 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 Alterity Therapeutics position
In addition to having Alterity Therapeutics 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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Check out Trending Equities. For information on how to trade Alterity Stock refer to our How to Trade Alterity Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Alterity Therapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alterity Therapeutics 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 Alterity Therapeutics' income statement, its balance sheet, and the statement of cash flows.