Illumina Return On Equity vs. Return On Asset
| I1LM34 Stock | 169.65 5.61 3.42% |
For Illumina profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Illumina to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Illumina utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Illumina's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Illumina over time as well as its relative position and ranking within its peers.
Illumina |
Illumina Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Illumina's current stock value. Our valuation model uses many indicators to compare Illumina value to that of its competitors to determine the firm's financial worth. Illumina is rated below average in return on equity category among its peers. It is rated fourth overall in return on asset category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Illumina by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Illumina's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Illumina Return On Asset vs. Return On Equity
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.
Illumina |
| = | -0.48 |
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.
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.
Illumina |
| = | 0.0092 |
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.
Illumina Return On Asset Comparison
Illumina is currently under evaluation in return on asset category among its peers.
Illumina Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Illumina. 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 Illumina 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 Illumina's important profitability drivers and their relationship over time.
Use Illumina 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 Illumina 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 Illumina will appreciate offsetting losses from the drop in the long position's value.Illumina Pair Trading
Illumina Pair Trading Analysis
The ability to find closely correlated positions to Illumina could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Illumina 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 Illumina - 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 Illumina to buy it.
The correlation of Illumina 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 Illumina moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Illumina 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 Illumina 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 Illumina position
In addition to having Illumina 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 Entertainment Thematic Idea Now
Entertainment
Companies from entertainment industry including show business, news and media. The Entertainment theme has 47 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 Entertainment Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Illumina Stock
When determining whether Illumina offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Illumina's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Illumina Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Illumina Stock:Check out Risk vs Return Analysis. For information on how to trade Illumina Stock refer to our How to Trade Illumina Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Illumina's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Illumina 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 Illumina's income statement, its balance sheet, and the statement of cash flows.