Edgio EBITDA vs. Net Income

EGIO Stock  USD 0.02  0.00  0.00%   
Considering Edgio's profitability and operating efficiency indicators, Edgio Inc may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Edgio's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
-56.1 M
Current Value
-53.3 M
Quarterly Volatility
27.1 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 11th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.26, while Price To Sales Ratio is likely to drop 26.60. At this time, Edgio's Interest Income is very stable compared to the past year. As of the 11th of December 2024, Income Quality is likely to grow to 0.15, though Accumulated Other Comprehensive Income is likely to grow to (10 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.450.37
Fairly Up
Very volatile
For Edgio profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Edgio to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Edgio Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Edgio's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Edgio Inc over time as well as its relative position and ranking within its peers.
  
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 gross domestic product.
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 Edgio. If investors know Edgio 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 Edgio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(26.00)
Revenue Per Share
72.469
Quarterly Revenue Growth
(0.12)
Return On Assets
(0.14)
Return On Equity
(0.63)
The market value of Edgio Inc is measured differently than its book value, which is the value of Edgio that is recorded on the company's balance sheet. Investors also form their own opinion of Edgio's value that differs from its market value or its book value, called intrinsic value, which is Edgio'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 Edgio's market value can be influenced by many factors that don't directly affect Edgio'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 Edgio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Edgio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edgio'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.

Edgio Inc Net Income vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Edgio's current stock value. Our valuation model uses many indicators to compare Edgio value to that of its competitors to determine the firm's financial worth.
Edgio Inc is rated below average in ebitda category among its peers. It also is rated below average in net income category among its peers . Edgio reported last year EBITDA of (56.14 Million). 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 Edgio's earnings, one of the primary drivers of an investment's value.

Edgio Net Income vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Edgio

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(74.24 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Edgio

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(141.65 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Edgio Net Income Comparison

Edgio is currently under evaluation in net income category among its peers.

Edgio Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Edgio, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Edgio will eventually generate negative long term returns. The profitability progress is the general direction of Edgio's change in net profit over the period of time. It can combine multiple indicators of Edgio, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-10.5 M-10 M
Operating Income-117.1 M-111.2 M
Income Before Tax-142.5 M-135.4 M
Total Other Income Expense Net-20.1 M-19.1 M
Net Loss-141.7 M-134.6 M
Income Tax Expense-19 M-18 M
Net Interest Income-5.4 M-5.1 M
Interest Income1.2 M1.2 M
Net Loss-141.7 M-134.6 M
Net Loss-49.3 M-46.8 M
Change To Netincome27.3 M16.6 M
Net Loss(0.86)(0.82)
Income Quality 0.10  0.15 
Net Income Per E B T 1.00  1.18 

Edgio Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Edgio. 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 Edgio 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 Edgio's important profitability drivers and their relationship over time.

Use Edgio 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 Edgio 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 Edgio will appreciate offsetting losses from the drop in the long position's value.

Edgio Pair Trading

Edgio Inc Pair Trading Analysis

The ability to find closely correlated positions to Edgio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Edgio 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 Edgio - 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 Edgio Inc to buy it.
The correlation of Edgio 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 Edgio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Edgio 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 Edgio 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Edgio position

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When determining whether Edgio Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Edgio's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Edgio Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Edgio Inc Stock:
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 gross domestic product.
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To fully project Edgio's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Edgio Inc 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 Edgio's income statement, its balance sheet, and the statement of cash flows.
Potential Edgio investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Edgio investors may work on each financial statement separately, they are all related. The changes in Edgio's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Edgio'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.