Dow Return On Asset vs. Cash And Equivalents
| DOW Stock | USD 44.81 0.88 2.00% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.19 | 0.1133 |
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| Operating Profit Margin | 0.12 | 0.0663 |
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For Dow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dow Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dow Inc over time as well as its relative position and ranking within its peers.
Dow |
Dow's Revenue Breakdown by Earning Segment
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Is Commodity Chemicals 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 Dow. If investors know Dow 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 Dow listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Dividend Share 2.8 | Earnings Share 1.5 | Revenue Per Share 61.377 | Quarterly Revenue Growth 0.014 |
The market value of Dow Inc is measured differently than its book value, which is the value of Dow that is recorded on the company's balance sheet. Investors also form their own opinion of Dow's value that differs from its market value or its book value, called intrinsic value, which is Dow's 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 Dow's market value can be influenced by many factors that don't directly affect Dow's 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 Dow's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dow is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dow'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.
Dow Inc Cash And Equivalents vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dow's current stock value. Our valuation model uses many indicators to compare Dow value to that of its competitors to determine the firm's financial worth. Dow Inc is rated below average in return on asset category among its peers. It is one of the top stocks in cash and equivalents category among its peers creating about 172,711,111,111 of Cash And Equivalents per Return On Asset. At this time, Dow's Cash And Equivalents is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Dow by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Dow Cash And Equivalents 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.
Dow |
| = | 0.0225 |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Dow |
| = | 3.89 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Dow Cash And Equivalents Comparison
Dow is currently under evaluation in cash and equivalents category among its peers.
Dow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dow will eventually generate negative long term returns. The profitability progress is the general direction of Dow's change in net profit over the period of time. It can combine multiple indicators of Dow, 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 | -7.7 B | -8.1 B | |
| Operating Income | 3 B | 5.1 B | |
| Net Income From Continuing Ops | 660 M | 627 M | |
| Income Before Tax | 656 M | 623.2 M | |
| Non Operating Income Net Other | 1.9 B | 1 B | |
| Net Income Applicable To Common Shares | 5.2 B | 3.2 B | |
| Net Income | 660 M | 627 M | |
| Income Tax Expense | -4 M | -3.8 M | |
| Total Other Income Expense Net | -2.3 B | -2.2 B | |
| Net Interest Income | -517 M | -542.9 M | |
| Interest Income | 229 M | 204 M | |
| Change To Netincome | 1.1 B | 1.1 B | |
| Net Income Per Share | 0.83 | 0.79 | |
| Income Quality | 7.87 | 8.27 | |
| Net Income Per E B T | 0.90 | 1.08 |
Dow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dow. 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 Dow 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 Dow's important profitability drivers and their relationship over time.
Use Dow 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 Dow 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 Dow will appreciate offsetting losses from the drop in the long position's value.Dow Pair Trading
Dow Inc Pair Trading Analysis
The ability to find closely correlated positions to Dow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dow 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 Dow - 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 Dow Inc to buy it.
The correlation of Dow 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 Dow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dow Inc 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 Dow 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 Dow position
In addition to having Dow 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 Dow Stock Analysis
When running Dow's price analysis, check to measure Dow'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 Dow is operating at the current time. Most of Dow's value examination focuses on studying past and present price action to predict the probability of Dow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dow's price. Additionally, you may evaluate how the addition of Dow to your portfolios can decrease your overall portfolio volatility.