Franklin Wireless Return On Equity vs. Return On Asset
| FKWL Stock | USD 4.30 0.10 2.38% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.11) | Current Value (0.11) | Quarterly Volatility 0.22396133 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.12 | 0.1139 |
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For Franklin Wireless profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Franklin Wireless to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Franklin Wireless Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Franklin Wireless's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Franklin Wireless Corp over time as well as its relative position and ranking within its peers.
Franklin |
Is Communications Equipment 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 Franklin Wireless. If investors know Franklin 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 Franklin Wireless 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 2.667 | Earnings Share (0.28) | Revenue Per Share 2.613 | Quarterly Revenue Growth (0.64) | Return On Assets (0.07) |
The market value of Franklin Wireless Corp is measured differently than its book value, which is the value of Franklin that is recorded on the company's balance sheet. Investors also form their own opinion of Franklin Wireless' value that differs from its market value or its book value, called intrinsic value, which is Franklin Wireless' 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 Franklin Wireless' market value can be influenced by many factors that don't directly affect Franklin Wireless' 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 Franklin Wireless' value and its price as these two are different measures arrived at by different means. Investors typically determine if Franklin Wireless is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Franklin Wireless' 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.
Franklin Wireless Corp Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Franklin Wireless's current stock value. Our valuation model uses many indicators to compare Franklin Wireless value to that of its competitors to determine the firm's financial worth. Franklin Wireless Corp is rated # 5 in return on equity category among its peers. It is rated below average in return on asset category among its peers . At this time, Franklin Wireless' Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Franklin Wireless 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.Franklin Return On Asset 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.
Franklin Wireless |
| = | -0.11 |
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.
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.
Franklin Wireless |
| = | -0.0716 |
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.
Franklin Return On Asset Comparison
Franklin Wireless is currently under evaluation in return on asset category among its peers.
Franklin Wireless Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Franklin Wireless, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Franklin Wireless will eventually generate negative long term returns. The profitability progress is the general direction of Franklin Wireless' change in net profit over the period of time. It can combine multiple indicators of Franklin Wireless, 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 | -1.2 M | -1.1 M | |
| Operating Income | -5.9 M | -5.6 M | |
| Income Before Tax | -5.1 M | -4.9 M | |
| Total Other Income Expense Net | 823.8 K | 865 K | |
| Net Loss | -4.2 M | -4 M | |
| Income Tax Expense | -949.3 K | -901.8 K | |
| Net Loss | -2.6 M | -2.4 M | |
| Net Loss | -4.2 M | -4 M | |
| Non Operating Income Net Other | 198.7 K | 342.5 K | |
| Net Interest Income | 804.1 K | 844.4 K | |
| Interest Income | 804.1 K | 844.4 K | |
| Change To Netincome | -571.7 K | -543.1 K | |
| Net Loss | (0.34) | (0.32) | |
| Income Quality | 0.19 | 0.18 | |
| Net Income Per E B T | 0.77 | 0.46 |
Franklin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Franklin Wireless. 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 Franklin Wireless 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 Franklin Wireless' important profitability drivers and their relationship over time.
Use Franklin Wireless 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 Franklin Wireless 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 Franklin Wireless will appreciate offsetting losses from the drop in the long position's value.Franklin Wireless Pair Trading
Franklin Wireless Corp Pair Trading Analysis
The ability to find closely correlated positions to Franklin Wireless could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Franklin Wireless 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 Franklin Wireless - 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 Franklin Wireless Corp to buy it.
The correlation of Franklin Wireless 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 Franklin Wireless moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Franklin Wireless Corp 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 Franklin Wireless 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 Franklin Wireless position
In addition to having Franklin Wireless 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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Check out Investing Opportunities. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Franklin Wireless' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Franklin Wireless Corp 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 Franklin Wireless' income statement, its balance sheet, and the statement of cash flows.