Fomento Econmico Net Income vs. Return On Asset

FOMA Stock  EUR 80.50  2.00  2.42%   
Considering Fomento Econmico's profitability and operating efficiency indicators, Fomento Econmico Mexicano may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Fomento Econmico's ability to earn profits and add value for shareholders.
For Fomento Econmico profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fomento Econmico to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fomento Econmico Mexicano utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fomento Econmico's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fomento Econmico Mexicano over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Fomento Econmico's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fomento Econmico is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fomento Econmico'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.

Fomento Econmico Mexicano Return On Asset vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fomento Econmico's current stock value. Our valuation model uses many indicators to compare Fomento Econmico value to that of its competitors to determine the firm's financial worth.
Fomento Econmico Mexicano is one of the top stocks in net income category among its peers. It also is one of the top stocks in return on asset category among its peers . The ratio of Net Income to Return On Asset for Fomento Econmico Mexicano is about  511,508,264,463 . 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 Fomento Econmico's earnings, one of the primary drivers of an investment's value.

Fomento Return On Asset vs. Net Income

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.

Fomento Econmico

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
24.76 B
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.
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.

Fomento Econmico

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0484
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.

Fomento Return On Asset Comparison

Fomento Econmico is currently under evaluation in return on asset category among its peers.

Fomento Econmico Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fomento Econmico, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fomento Econmico will eventually generate negative long term returns. The profitability progress is the general direction of Fomento Econmico's change in net profit over the period of time. It can combine multiple indicators of Fomento Econmico, 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.
Fomento Econmico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. Fomento Econmico Mexicano, S.A.B. de C.V. was founded in 1890 and is headquartered in Monterrey, Mexico. FOM ECO operates under BeveragesBrewers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 313693 people.

Fomento Profitability Driver Comparison

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

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

Fomento Econmico Pair Trading

Fomento Econmico Mexicano Pair Trading Analysis

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

In addition to having Fomento Econmico 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.

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Run Cleaning Thematic Idea Now

Cleaning
Cleaning Theme
Compnanies producing and distributing cleaning products, supplies, and accessories. The Cleaning theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cleaning Theme or any other thematic opportunities.
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Other Information on Investing in Fomento Stock

To fully project Fomento Econmico's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fomento Econmico Mexicano 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 Fomento Econmico's income statement, its balance sheet, and the statement of cash flows.
Potential Fomento Econmico investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fomento Econmico investors may work on each financial statement separately, they are all related. The changes in Fomento Econmico's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fomento Econmico'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.