ITV Plc Gross Profit vs. Net Income

IJ7 Stock  EUR 0.74  0.01  1.33%   
Based on the measurements of profitability obtained from ITV Plc's financial statements, ITV plc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess ITV Plc's ability to earn profits and add value for shareholders.
For ITV Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ITV Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ITV plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ITV Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ITV plc over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between ITV Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if ITV Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ITV Plc'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.

ITV plc Net Income vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ITV Plc's current stock value. Our valuation model uses many indicators to compare ITV Plc value to that of its competitors to determine the firm's financial worth.
ITV plc is currently regarded as number one stock in gross profit category among its peers. It also is currently regarded as number one stock in net income category among its peers making up about  0.44  of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for ITV plc is roughly  2.26 . 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 ITV Plc's earnings, one of the primary drivers of an investment's value.

ITV Net Income vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

ITV Plc

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
855 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.

ITV Plc

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
378 M
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.

ITV Net Income Comparison

ITV Plc is currently under evaluation in net income category among its peers.

ITV Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ITV Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ITV Plc will eventually generate negative long term returns. The profitability progress is the general direction of ITV Plc's change in net profit over the period of time. It can combine multiple indicators of ITV Plc, 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.
ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. ITV plc was founded in 1955 is headquartered in London, the United Kingdom. ITV plc operates under Broadcasting - TV classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6055 people.

ITV Profitability Driver Comparison

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

Use ITV Plc 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 ITV Plc 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 ITV Plc will appreciate offsetting losses from the drop in the long position's value.

ITV Plc Pair Trading

ITV plc Pair Trading Analysis

The ability to find closely correlated positions to ITV Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ITV Plc 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 ITV Plc - 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 ITV plc to buy it.
The correlation of ITV Plc 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 ITV Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ITV plc 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 ITV Plc 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ITV Plc position

In addition to having ITV Plc 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 Candy and Soda Thematic Idea Now

Candy and Soda
Candy and Soda Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 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 Candy and Soda Theme or any other thematic opportunities.
View All  Next Launch

Other Information on Investing in ITV Stock

To fully project ITV Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ITV plc 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 ITV Plc's income statement, its balance sheet, and the statement of cash flows.
Potential ITV Plc investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ITV Plc investors may work on each financial statement separately, they are all related. The changes in ITV Plc's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ITV Plc'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.