Clearwater Analytics Return On Equity vs. Gross Profit
| CWAN Stock | USD 31.94 0.19 0.60% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.06) | Current Value (0.06) | Quarterly Volatility 0.04447519 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.79 | 0.709 |
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For Clearwater Analytics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Clearwater Analytics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Clearwater Analytics Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Clearwater Analytics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Clearwater Analytics Holdings over time as well as its relative position and ranking within its peers.
Clearwater |
Is Application Software 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 Clearwater Analytics. If investors know Clearwater 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 Clearwater Analytics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share 1.984 | Quarterly Revenue Growth 0.224 | Return On Assets 0.0325 | Return On Equity 0.0091 |
The market value of Clearwater Analytics is measured differently than its book value, which is the value of Clearwater that is recorded on the company's balance sheet. Investors also form their own opinion of Clearwater Analytics' value that differs from its market value or its book value, called intrinsic value, which is Clearwater Analytics' 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 Clearwater Analytics' market value can be influenced by many factors that don't directly affect Clearwater Analytics' 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 Clearwater Analytics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Clearwater Analytics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clearwater Analytics' 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.
Clearwater Analytics Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Clearwater Analytics's current stock value. Our valuation model uses many indicators to compare Clearwater Analytics value to that of its competitors to determine the firm's financial worth. Clearwater Analytics Holdings is rated fifth in return on equity category among its peers. It is rated below average in gross profit category among its peers fabricating about 23,696,923,077 of Gross Profit per Return On Equity. At this time, Clearwater Analytics' Return On Equity is very stable compared to the past year. 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 Clearwater Analytics' earnings, one of the primary drivers of an investment's value.Clearwater Analytics' Earnings Breakdown by Geography
Clearwater Gross Profit 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.
Clearwater Analytics |
| = | 0.0091 |
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Clearwater Analytics |
| = | 215.64 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Clearwater Gross Profit Comparison
Clearwater Analytics is currently under evaluation in gross profit category among its peers.
Clearwater Analytics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Clearwater Analytics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Clearwater Analytics will eventually generate negative long term returns. The profitability progress is the general direction of Clearwater Analytics' change in net profit over the period of time. It can combine multiple indicators of Clearwater Analytics, 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 | 2.9 M | 3.1 M | |
| Net Interest Income | 5.7 M | 6 M | |
| Operating Income | -16.7 M | -15.9 M | |
| Net Loss | -21.6 M | -22.7 M | |
| Income Before Tax | -22.9 M | -21.7 M | |
| Total Other Income Expense Net | -6.1 M | -6.4 M | |
| Net Loss | -7.2 M | -7.5 M | |
| Net Loss | -21.6 M | -22.7 M | |
| Income Tax Expense | 217 K | 206.2 K | |
| Non Operating Income Net Other | 57.5 K | 60.4 K | |
| Change To Netincome | 74.6 M | 39.1 M | |
| Net Loss | (0.11) | (0.11) | |
| Income Quality | (3.91) | (4.11) | |
| Net Income Per E B T | 0.95 | 0.85 |
Clearwater Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Clearwater Analytics. 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 Clearwater Analytics 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 Clearwater Analytics' important profitability drivers and their relationship over time.
Use Clearwater Analytics 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 Clearwater Analytics 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 Clearwater Analytics will appreciate offsetting losses from the drop in the long position's value.Clearwater Analytics Pair Trading
Clearwater Analytics Holdings Pair Trading Analysis
The ability to find closely correlated positions to Clearwater Analytics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Clearwater Analytics 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 Clearwater Analytics - 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 Clearwater Analytics Holdings to buy it.
The correlation of Clearwater Analytics 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 Clearwater Analytics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Clearwater Analytics 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 Clearwater Analytics 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 Clearwater Analytics position
In addition to having Clearwater Analytics 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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To fully project Clearwater Analytics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Clearwater Analytics 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 Clearwater Analytics' income statement, its balance sheet, and the statement of cash flows.