BAE Systems Return On Asset vs. Revenue
| BAESY Stock | USD 62.14 3.05 4.68% |
For BAE Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BAE Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BAE Systems PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BAE Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BAE Systems PLC over time as well as its relative position and ranking within its peers.
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BAE Systems PLC Revenue vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BAE Systems's current stock value. Our valuation model uses many indicators to compare BAE Systems value to that of its competitors to determine the firm's financial worth. BAE Systems PLC is number one stock in return on asset category among its peers. It also is the top company in revenue category among its peers totaling about 516,428,571,429 of Revenue per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value BAE Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BAE Systems' Pink Sheet. 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.BAE Revenue vs. Return On Asset
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.
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| = | 0.0378 |
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.
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.
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| = | 19.52 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.
BAE Revenue vs Competition
BAE Systems PLC is the top company in revenue category among its peers. Market size based on revenue of Industrials industry is currently estimated at about 19.99 Billion. BAE Systems totals roughly 19.52 Billion in revenue claiming about 98% of equities under Industrials industry.
BAE Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in BAE Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BAE Systems will eventually generate negative long term returns. The profitability progress is the general direction of BAE Systems' change in net profit over the period of time. It can combine multiple indicators of BAE Systems, 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.
BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company was founded in 1970 and is based in Farnborough, the United Kingdom. Bae Systems operates under Aerospace Defense classification in the United States and is traded on OTC Exchange. It employs 91400 people.
BAE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BAE Systems. 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 BAE Systems 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 BAE Systems' important profitability drivers and their relationship over time.
Use BAE Systems 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 BAE Systems 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 BAE Systems will appreciate offsetting losses from the drop in the long position's value.BAE Systems Pair Trading
BAE Systems PLC Pair Trading Analysis
The ability to find closely correlated positions to BAE Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BAE Systems 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 BAE Systems - 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 BAE Systems PLC to buy it.
The correlation of BAE Systems 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 BAE Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BAE Systems PLC 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 BAE Systems 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 BAE Systems position
In addition to having BAE Systems 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?
Run Industrials ETFs Thematic Idea Now
Industrials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Industrials ETFs theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Industrials ETFs Theme or any other thematic opportunities.
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Additional Tools for BAE Pink Sheet Analysis
When running BAE Systems' price analysis, check to measure BAE Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BAE Systems is operating at the current time. Most of BAE Systems' value examination focuses on studying past and present price action to predict the probability of BAE Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BAE Systems' price. Additionally, you may evaluate how the addition of BAE Systems to your portfolios can decrease your overall portfolio volatility.