Detection Technology Return On Asset vs. Profit Margin
Based on the key profitability measurements obtained from Detection Technology's financial statements, Detection Technology OY may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Detection Technology's ability to earn profits and add value for shareholders.
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Please note, there is a significant difference between Detection Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Detection Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Detection Technology's 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.
For Detection Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Detection Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Detection Technology OY utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Detection Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Detection Technology OY over time as well as its relative position and ranking within its peers.
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Detection Technology Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Detection Technology's current stock value. Our valuation model uses many indicators to compare Detection Technology value to that of its competitors to determine the firm's financial worth. Detection Technology OY is rated # 3 in return on asset category among its peers. It also is rated # 3 in profit margin category among its peers fabricating about 1.31 of Profit Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Detection Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Detection Technology's Stock. 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.Detection Profit Margin 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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| = | 0.0395 |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
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| = | 0.05 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Detection Profit Margin Comparison
Detection Technology is currently under evaluation in profit margin category among its peers.
Detection Technology Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Detection Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Detection Technology will eventually generate negative long term returns. The profitability progress is the general direction of Detection Technology's change in net profit over the period of time. It can combine multiple indicators of Detection Technology, 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.
Detection Technology Oyj provides X-ray detector solutions for medical, security, and industrial applications in approximately 40 countries. Detection Technology Oyj was founded in 1991 and is based in Espoo, Finland. Detection Technology operates under Scientific Technical Instruments classification in Finland and is traded on Helsinki Exchange. It employs 438 people.
Detection Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Detection Technology. 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 Detection Technology 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 Detection Technology's important profitability drivers and their relationship over time.
Use Detection Technology 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 Detection Technology 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 Detection Technology will appreciate offsetting losses from the drop in the long position's value.Detection Technology Pair Trading
Detection Technology OY Pair Trading Analysis
The ability to find closely correlated positions to Detection Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Detection Technology 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 Detection Technology - 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 Detection Technology OY to buy it.
The correlation of Detection Technology 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 Detection Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Detection Technology 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 Detection Technology 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 Detection Technology position
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Other Information on Investing in Detection Stock
To fully project Detection Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Detection Technology 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 Detection Technology's income statement, its balance sheet, and the statement of cash flows.