Based on the measurements of profitability obtained from DRI Healthcare's financial statements, DRI Healthcare's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess DRI Healthcare's ability to earn profits and add value for shareholders.
For DRI Healthcare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DRI Healthcare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DRI Healthcare Trust utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DRI Healthcare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DRI Healthcare Trust over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between DRI Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if DRI Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DRI Healthcare'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.
DRI Healthcare Trust Gross Profit vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DRI Healthcare's current stock value. Our valuation model uses many indicators to compare DRI Healthcare value to that of its competitors to determine the firm's financial worth.
DRI Healthcare Trust is one of the top stocks in price to sales category among its peers. It also is one of the top stocks in gross profit category among its peers fabricating about 26,216,361 of Gross Profit per Price To Sales. At present, DRI Healthcare's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value DRI Healthcare by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DRI Healthcare'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.
DRI Gross Profit vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
DRI Healthcare
P/S
=
MV Per Share
Revenue Per Share
=
3.55 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
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.
DRI Healthcare
Gross Profit
=
Revenue
-
Cost of Revenue
=
93.03 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.
DRI Gross Profit Comparison
DRI Healthcare is currently under evaluation in gross profit category among its peers.
DRI Healthcare Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DRI Healthcare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DRI Healthcare will eventually generate negative long term returns. The profitability progress is the general direction of DRI Healthcare's change in net profit over the period of time. It can combine multiple indicators of DRI Healthcare, 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.
Profitability drivers are factors that can directly affect your investment outlook on DRI Healthcare. 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 DRI Healthcare 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 DRI Healthcare's important profitability drivers and their relationship over time.
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 DRI Healthcare 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 DRI Healthcare will appreciate offsetting losses from the drop in the long position's value.
DRI Healthcare Pair Trading
DRI Healthcare Trust Pair Trading Analysis
The ability to find closely correlated positions to DRI Healthcare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DRI Healthcare 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 DRI Healthcare - 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 DRI Healthcare Trust to buy it.
The correlation of DRI Healthcare 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 DRI Healthcare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DRI Healthcare Trust 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 DRI Healthcare 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.
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To fully project DRI Healthcare's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DRI Healthcare Trust 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 DRI Healthcare's income statement, its balance sheet, and the statement of cash flows.
Potential DRI Healthcare investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DRI Healthcare investors may work on each financial statement separately, they are all related. The changes in DRI Healthcare's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DRI Healthcare's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
