Denso Corp Return On Equity vs. Gross Profit
| DNZOY Stock | USD 14.11 0.39 2.69% |
For Denso Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Denso Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Denso Corp ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Denso Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Denso Corp ADR over time as well as its relative position and ranking within its peers.
Denso |
Denso Corp ADR Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Denso Corp's current stock value. Our valuation model uses many indicators to compare Denso Corp value to that of its competitors to determine the firm's financial worth. Denso Corp ADR is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in gross profit category among its peers fabricating about Huge of Gross Profit per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Denso Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Denso Corp'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.Denso 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.
Denso Corp |
| = | 0.0682 |
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.
Denso Corp |
| = | 801.49 B |
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.
Denso Gross Profit Comparison
Denso Corp is currently under evaluation in gross profit category among its peers.
Denso Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Denso Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Denso Corp will eventually generate negative long term returns. The profitability progress is the general direction of Denso Corp's change in net profit over the period of time. It can combine multiple indicators of Denso Corp, 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.
DENSO Corporation develops, manufactures, and sells automotive parts in Japan, rest of Asia, North America, Europe, and internationally. DENSO Corporation was incorporated in 1949 and is based in Kariya, Japan. Denso Corp is traded on OTC Exchange in the United States.
Denso Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Denso Corp. 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 Denso Corp 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 Denso Corp's important profitability drivers and their relationship over time.
Use Denso Corp 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 Denso Corp 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 Denso Corp will appreciate offsetting losses from the drop in the long position's value.Denso Corp Pair Trading
Denso Corp ADR Pair Trading Analysis
The ability to find closely correlated positions to Denso Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Denso Corp 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 Denso Corp - 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 Denso Corp ADR to buy it.
The correlation of Denso Corp 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 Denso Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Denso Corp ADR 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 Denso Corp 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 Denso Corp position
In addition to having Denso Corp 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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Additional Tools for Denso Pink Sheet Analysis
When running Denso Corp's price analysis, check to measure Denso Corp'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 Denso Corp is operating at the current time. Most of Denso Corp's value examination focuses on studying past and present price action to predict the probability of Denso Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Denso Corp's price. Additionally, you may evaluate how the addition of Denso Corp to your portfolios can decrease your overall portfolio volatility.