Hisamitsu Pharmaceutical Return On Asset vs. Return On Equity
| HPX Stock | EUR 25.00 0.20 0.81% |
For Hisamitsu Pharmaceutical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hisamitsu Pharmaceutical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hisamitsu Pharmaceutical Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hisamitsu Pharmaceutical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hisamitsu Pharmaceutical Co over time as well as its relative position and ranking within its peers.
Hisamitsu |
Hisamitsu Pharmaceutical Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hisamitsu Pharmaceutical's current stock value. Our valuation model uses many indicators to compare Hisamitsu Pharmaceutical value to that of its competitors to determine the firm's financial worth. Hisamitsu Pharmaceutical Co is one of the top stocks in return on asset category among its peers. It also is one of the top stocks in return on equity category among its peers reporting about 2.38 of Return On Equity per Return On Asset. 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 Hisamitsu Pharmaceutical's earnings, one of the primary drivers of an investment's value.Hisamitsu Return On Equity vs. Return On Asset
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.
Hisamitsu Pharmaceutical |
| = | 0.0212 |
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.
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.
Hisamitsu Pharmaceutical |
| = | 0.0504 |
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.
Hisamitsu Return On Equity Comparison
Hisamitsu Pharmaceutical is currently under evaluation in return on equity category among its peers.
Hisamitsu Pharmaceutical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hisamitsu Pharmaceutical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hisamitsu Pharmaceutical will eventually generate negative long term returns. The profitability progress is the general direction of Hisamitsu Pharmaceutical's change in net profit over the period of time. It can combine multiple indicators of Hisamitsu Pharmaceutical, 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.
Hisamitsu Pharmaceutical Co., Inc. engages in the research and development, manufacture, purchase, and sale of pharmaceuticals in Japan. Hisamitsu Pharmaceutical Co., Inc. was founded in 1847 and is headquartered in Tosu, Japan. HISAMITSU PHARMA operates under Drug ManufacturersSpecialty Generic classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2770 people.
Hisamitsu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hisamitsu Pharmaceutical. 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 Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical's important profitability drivers and their relationship over time.
Use Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical will appreciate offsetting losses from the drop in the long position's value.Hisamitsu Pharmaceutical Pair Trading
Hisamitsu Pharmaceutical Co Pair Trading Analysis
The ability to find closely correlated positions to Hisamitsu Pharmaceutical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical - 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 Hisamitsu Pharmaceutical Co to buy it.
The correlation of Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical position
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Other Information on Investing in Hisamitsu Stock
To fully project Hisamitsu Pharmaceutical's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hisamitsu Pharmaceutical 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 Hisamitsu Pharmaceutical's income statement, its balance sheet, and the statement of cash flows.