Alphabet Net Income vs. Current Ratio
| GOOGL Stock | MXN 3,501 100.97 2.97% |
For Alphabet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alphabet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alphabet Inc Class A utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alphabet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alphabet Inc Class A over time as well as its relative position and ranking within its peers.
Alphabet |
Alphabet Class A Current Ratio vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alphabet's current stock value. Our valuation model uses many indicators to compare Alphabet value to that of its competitors to determine the firm's financial worth. Alphabet Inc Class A is one of the top stocks in net income category among its peers. It also is one of the top stocks in current ratio category among its peers . The ratio of Net Income to Current Ratio for Alphabet Inc Class A is about 25,629,893,238 . 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 Alphabet's earnings, one of the primary drivers of an investment's value.Alphabet Current Ratio 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.
Alphabet |
| = | 72.02 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.
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.
Alphabet |
| = | 2.81 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).
Alphabet Current Ratio Comparison
Alphabet is currently under evaluation in current ratio category among its peers.
Alphabet Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alphabet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alphabet will eventually generate negative long term returns. The profitability progress is the general direction of Alphabet's change in net profit over the period of time. It can combine multiple indicators of Alphabet, 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.
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company was founded in 1998 and is headquartered in Mountain View, California. ALPHABET INC operates under Internet Content Information classification in Mexico and is traded on Mexico Stock Exchange. It employs 174014 people.
Alphabet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alphabet. 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 Alphabet 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 Alphabet's important profitability drivers and their relationship over time.
Use Alphabet 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 Alphabet 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 Alphabet will appreciate offsetting losses from the drop in the long position's value.Alphabet Pair Trading
Alphabet Inc Class A Pair Trading Analysis
The ability to find closely correlated positions to Alphabet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alphabet 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 Alphabet - 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 Alphabet Inc Class A to buy it.
The correlation of Alphabet 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 Alphabet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alphabet Class A 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 Alphabet 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 Alphabet position
In addition to having Alphabet 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?
Run Raw Materials Thematic Idea Now
Raw Materials
Companies that are involved with the development and processing of raw materials such as silver or forestry. The Raw Materials theme has 15 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 Raw Materials Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Alphabet Stock
When determining whether Alphabet Class A is a strong investment it is important to analyze Alphabet's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alphabet's future performance. For an informed investment choice regarding Alphabet Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Alphabet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alphabet Class A 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 Alphabet's income statement, its balance sheet, and the statement of cash flows.