Burberry Group Return On Equity vs. Return On Asset
| BURBY Stock | USD 10.84 0.37 3.30% |
For Burberry Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Burberry Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Burberry Group Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Burberry Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Burberry Group Plc over time as well as its relative position and ranking within its peers.
Burberry |
Burberry Group Plc Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Burberry Group's current stock value. Our valuation model uses many indicators to compare Burberry Group value to that of its competitors to determine the firm's financial worth. Burberry Group Plc is rated fourth in return on equity category among its peers. It is rated fifth in return on asset category among its peers reporting about 0.33 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Burberry Group Plc is roughly 3.01 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Burberry Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Burberry Group's 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.Burberry Return On Asset 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.
Burberry Group |
| = | 0.29 |
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.
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.
Burberry Group |
| = | 0.0966 |
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.
Burberry Return On Asset Comparison
Burberry Group is currently under evaluation in return on asset category among its peers.
Burberry Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Burberry Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Burberry Group will eventually generate negative long term returns. The profitability progress is the general direction of Burberry Group's change in net profit over the period of time. It can combine multiple indicators of Burberry Group, 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.
Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom. Burberry Group operates under Luxury Goods classification in the United States and is traded on OTC Exchange. It employs 9293 people.
Burberry Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Burberry Group. 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 Burberry Group 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 Burberry Group's important profitability drivers and their relationship over time.
Use Burberry Group 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 Burberry Group 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 Burberry Group will appreciate offsetting losses from the drop in the long position's value.Burberry Group Pair Trading
Burberry Group Plc Pair Trading Analysis
The ability to find closely correlated positions to Burberry Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Burberry Group 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 Burberry Group - 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 Burberry Group Plc to buy it.
The correlation of Burberry Group 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 Burberry Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Burberry Group 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 Burberry Group 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 Burberry Group position
In addition to having Burberry Group 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 Artificial Intelligence Thematic Idea Now
Artificial Intelligence
Technology companies, funds, and ETFs across multiple industries that are involved in research or development in the field of reasoning, learning, natural language processing and perception as well as its application to science and commerce. This theme may also include entities involved in cybernetics and cognitive brain simulation field. The Artificial Intelligence theme has 42 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 Artificial Intelligence Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Burberry Pink Sheet Analysis
When running Burberry Group's price analysis, check to measure Burberry Group's 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 Burberry Group is operating at the current time. Most of Burberry Group's value examination focuses on studying past and present price action to predict the probability of Burberry Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Burberry Group's price. Additionally, you may evaluate how the addition of Burberry Group to your portfolios can decrease your overall portfolio volatility.