Hertz Global Operating Margin vs. Return On Asset

HTZ Stock  USD 3.89  0.23  6.28%   
Taking into consideration Hertz Global's profitability measurements, Hertz Global Holdings is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in December. Profitability indicators assess Hertz Global's ability to earn profits and add value for shareholders.

Hertz Global Operating Profit Margin

0.1

At this time, Hertz Global's Days Sales Outstanding is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to rise to 0.09 in 2024, whereas Price To Sales Ratio is likely to drop 0.33 in 2024. At this time, Hertz Global's Income Before Tax is fairly stable compared to the past year. Net Income is likely to rise to about 646.8 M in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (235.6 M).
For Hertz Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hertz Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hertz Global Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hertz Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hertz Global Holdings over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Passenger Ground Transportation 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 Hertz Global. If investors know Hertz 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 Hertz Global 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
(0.31)
Earnings Share
(8.97)
Revenue Per Share
30.018
Quarterly Revenue Growth
(0.05)
Return On Assets
(0.03)
The market value of Hertz Global Holdings is measured differently than its book value, which is the value of Hertz that is recorded on the company's balance sheet. Investors also form their own opinion of Hertz Global's value that differs from its market value or its book value, called intrinsic value, which is Hertz Global's 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 Hertz Global's market value can be influenced by many factors that don't directly affect Hertz Global's 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 Hertz Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hertz Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hertz Global'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.

Hertz Global Holdings Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hertz Global's current stock value. Our valuation model uses many indicators to compare Hertz Global value to that of its competitors to determine the firm's financial worth.
Hertz Global Holdings is rated below average in operating margin category among its peers. It also is rated below average in return on asset category among its peers . At this time, Hertz Global's Operating Profit Margin is fairly stable compared to the past year. 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 Hertz Global's earnings, one of the primary drivers of an investment's value.

Hertz Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Hertz Global

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.02) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

Hertz Global

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0321
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.

Hertz Return On Asset Comparison

Hertz Global is currently under evaluation in return on asset category among its peers.

Hertz Global Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hertz Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hertz Global will eventually generate negative long term returns. The profitability progress is the general direction of Hertz Global's change in net profit over the period of time. It can combine multiple indicators of Hertz Global, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-248 M-235.6 M
Operating Income915 M594.1 M
Income Before Tax286 M300.3 M
Total Other Income Expense Net-629 M-660.5 M
Net Income616 M646.8 M
Income Tax Expense-330 M-313.5 M
Net Interest Income-703 M-738.1 M
Net Income From Continuing Ops1.1 B1.1 B
Net Income Applicable To Common Shares2.4 B2.5 B
Non Operating Income Net Other807.3 M847.7 M
Change To Netincome-241.5 M-229.4 M
Net Income Per Share 1.97  2.07 
Income Quality 4.02  4.22 
Net Income Per E B T 2.15  1.16 

Hertz Profitability Driver Comparison

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

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Additional Tools for Hertz Stock Analysis

When running Hertz Global's price analysis, check to measure Hertz Global's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hertz Global is operating at the current time. Most of Hertz Global's value examination focuses on studying past and present price action to predict the probability of Hertz Global's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hertz Global's price. Additionally, you may evaluate how the addition of Hertz Global to your portfolios can decrease your overall portfolio volatility.