Based on the measurements of profitability obtained from Haverty Furniture's financial statements, Haverty Furniture Companies is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Haverty Furniture's ability to earn profits and add value for shareholders.
For Haverty Furniture profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Haverty Furniture to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Haverty Furniture Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Haverty Furniture's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Haverty Furniture Companies over time as well as its relative position and ranking within its peers.
Haverty
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Please note, there is a significant difference between Haverty Furniture's value and its price as these two are different measures arrived at by different means. Investors typically determine if Haverty Furniture is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Haverty Furniture'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.
Haverty Furniture Return On Asset vs. Price To Sales Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Haverty Furniture's current stock value. Our valuation model uses many indicators to compare Haverty Furniture value to that of its competitors to determine the firm's financial worth.
Haverty Furniture Companies is one of the top stocks in price to sales category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 0.64 of Return On Asset per Price To Sales. The ratio of Price To Sales to Return On Asset for Haverty Furniture Companies is roughly 1.55 . At present, Haverty Furniture's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. 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 Haverty Furniture's earnings, one of the primary drivers of an investment's value.
Haverty Return On Asset vs. Price To Sales
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Haverty Furniture
P/S
=
MV Per Share
Revenue Per Share
=
0.04 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's 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.
Haverty Furniture
Return On Asset
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Net Income
Total Assets
=
0.0264
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.
Haverty Return On Asset Comparison
Haverty Furniture is currently under evaluation in return on asset category among its peers.
Haverty Furniture Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Haverty Furniture, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Haverty Furniture will eventually generate negative long term returns. The profitability progress is the general direction of Haverty Furniture's change in net profit over the period of time. It can combine multiple indicators of Haverty Furniture, 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.
Profitability drivers are factors that can directly affect your investment outlook on Haverty Furniture. 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 Haverty Furniture 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 Haverty Furniture's important profitability drivers and their relationship over time.
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 Haverty Furniture 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 Haverty Furniture will appreciate offsetting losses from the drop in the long position's value.
Haverty Furniture Pair Trading
Haverty Furniture Companies Pair Trading Analysis
The ability to find closely correlated positions to Haverty Furniture could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Haverty Furniture 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 Haverty Furniture - 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 Haverty Furniture Companies to buy it.
The correlation of Haverty Furniture 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 Haverty Furniture moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Haverty Furniture 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 Haverty Furniture 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 Haverty Furniture position
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When determining whether Haverty Furniture is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Haverty Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Haverty Furniture Companies Stock. Highlighted below are key reports to facilitate an investment decision about Haverty Furniture Companies Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
To fully project Haverty Furniture's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Haverty Furniture 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 Haverty Furniture's income statement, its balance sheet, and the statement of cash flows.
Potential Haverty Furniture investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Haverty Furniture investors may work on each financial statement separately, they are all related. The changes in Haverty Furniture's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Haverty Furniture'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.
