ITT Educational Gross Profit vs. Current Ratio

ESINQDelisted Stock  USD 0.0001  0.00  0.00%   
Taking into consideration ITT Educational's profitability measurements, ITT Educational Services may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess ITT Educational's ability to earn profits and add value for shareholders.
For ITT Educational profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ITT Educational to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ITT Educational Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ITT Educational's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ITT Educational Services 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 board of governors.
Please note, there is a significant difference between ITT Educational's value and its price as these two are different measures arrived at by different means. Investors typically determine if ITT Educational is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ITT Educational'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.

ITT Educational Services Current Ratio vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ITT Educational's current stock value. Our valuation model uses many indicators to compare ITT Educational value to that of its competitors to determine the firm's financial worth.
ITT Educational Services is one of the top stocks in gross profit category among its peers. It is rated # 4 in current ratio category among its peers . The ratio of Gross Profit to Current Ratio for ITT Educational Services is about  686,500,000 . 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 ITT Educational's earnings, one of the primary drivers of an investment's value.

ITT Current Ratio vs. Gross Profit

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.

ITT Educational

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
494.28 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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

ITT Educational

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
0.72 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

ITT Current Ratio Comparison

ITT Educational is currently under evaluation in current ratio category among its peers.

ITT Educational Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ITT Educational, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ITT Educational will eventually generate negative long term returns. The profitability progress is the general direction of ITT Educational's change in net profit over the period of time. It can combine multiple indicators of ITT Educational, 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.
ITT Educational Services, Inc. provides postsecondary degree programs in the United States. On September 16, 2016, ITT Educational Services Inc. along with its affiliates filed a voluntary petition for liquidation under Chapter 7 in the U.S. ITT Educational operates under Education Training Services classification in the United States and is traded on OTC Exchange. It employs 4100 people.

ITT Profitability Driver Comparison

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

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

ITT Educational Pair Trading

ITT Educational Services Pair Trading Analysis

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

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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 board of governors.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Consideration for investing in ITT Pink Sheet

If you are still planning to invest in ITT Educational Services check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the ITT Educational's history and understand the potential risks before investing.
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