Spirent Communications EBITDA vs. Net Income
| BW8 Stock | EUR 2.06 0.02 0.98% |
For Spirent Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Spirent Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Spirent Communications plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Spirent Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Spirent Communications plc over time as well as its relative position and ranking within its peers.
Spirent |
Spirent Communications Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Spirent Communications's current stock value. Our valuation model uses many indicators to compare Spirent Communications value to that of its competitors to determine the firm's financial worth. Spirent Communications plc is rated below average in ebitda category among its peers. It is rated fourth in net income category among its peers making up about 0.69 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Spirent Communications plc is roughly 1.46 . 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 Spirent Communications' earnings, one of the primary drivers of an investment's value.Spirent Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Spirent Communications |
| = | 130.1 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Spirent Communications |
| = | 89.2 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Spirent Net Income Comparison
Spirent Communications is currently under evaluation in net income category among its peers.
Spirent Communications Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Spirent Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Spirent Communications will eventually generate negative long term returns. The profitability progress is the general direction of Spirent Communications' change in net profit over the period of time. It can combine multiple indicators of Spirent Communications, 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.
Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom. SPIRENT COMMUNIC operates under Telecom Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1429 people.
Spirent Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Spirent Communications. 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 Spirent Communications 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 Spirent Communications' important profitability drivers and their relationship over time.
Use Spirent Communications 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 Spirent Communications 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 Spirent Communications will appreciate offsetting losses from the drop in the long position's value.Spirent Communications Pair Trading
Spirent Communications plc Pair Trading Analysis
The ability to find closely correlated positions to Spirent Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Spirent Communications 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 Spirent Communications - 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 Spirent Communications plc to buy it.
The correlation of Spirent Communications 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 Spirent Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Spirent Communications 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 Spirent Communications 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 Spirent Communications position
In addition to having Spirent Communications 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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Rentals
Companies providing rental and leasing services to public and business. The Rentals theme has 41 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 Rentals Theme or any other thematic opportunities.
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Other Information on Investing in Spirent Stock
To fully project Spirent Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Spirent Communications 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 Spirent Communications' income statement, its balance sheet, and the statement of cash flows.