IRhythm Technologies Return On Equity vs. Operating Margin
| IRTC Stock | USD 82.45 0.13 0.16% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.59) | Current Value (0.62) | Quarterly Volatility 1.23355497 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.52 | 0.6735 |
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For IRhythm Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of IRhythm Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well iRhythm Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between IRhythm Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of iRhythm Technologies over time as well as its relative position and ranking within its peers.
IRhythm |
IRhythm Technologies' Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Health Care Equipment & Supplies 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 IRhythm Technologies. If investors know IRhythm 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 IRhythm Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.85) | Revenue Per Share 18.045 | Quarterly Revenue Growth 0.184 | Return On Assets (0.09) | Return On Equity (1.03) |
The market value of iRhythm Technologies is measured differently than its book value, which is the value of IRhythm that is recorded on the company's balance sheet. Investors also form their own opinion of IRhythm Technologies' value that differs from its market value or its book value, called intrinsic value, which is IRhythm Technologies' 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 IRhythm Technologies' market value can be influenced by many factors that don't directly affect IRhythm Technologies' 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 IRhythm Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if IRhythm Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, IRhythm Technologies' 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.
iRhythm Technologies Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining IRhythm Technologies's current stock value. Our valuation model uses many indicators to compare IRhythm Technologies value to that of its competitors to determine the firm's financial worth. iRhythm Technologies is rated second overall in return on equity category among its peers. It also is rated second overall in operating margin category among its peers . At present, IRhythm Technologies' Return On Equity is projected to increase slightly 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 IRhythm Technologies' earnings, one of the primary drivers of an investment's value.IRhythm Operating Margin 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.
IRhythm Technologies |
| = | -1.03 |
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.
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.
IRhythm Technologies |
| = | (0.07) % |
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.
IRhythm Operating Margin Comparison
IRhythm Technologies is currently under evaluation in operating margin category among its peers.
IRhythm Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in IRhythm Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, IRhythm Technologies will eventually generate negative long term returns. The profitability progress is the general direction of IRhythm Technologies' change in net profit over the period of time. It can combine multiple indicators of IRhythm Technologies, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -112 K | -117.6 K | |
| Operating Income | -125.2 M | -118.9 M | |
| Net Loss | -123.4 M | -117.2 M | |
| Income Before Tax | -122.7 M | -116.5 M | |
| Total Other Income Expense Net | 2.5 M | 2.6 M | |
| Net Loss | -104.5 M | -99.3 M | |
| Net Loss | -123.4 M | -117.2 M | |
| Income Tax Expense | 750 K | 543 K | |
| Interest Income | 6.2 M | 6.5 M | |
| Net Interest Income | 2.5 M | 2.6 M | |
| Non Operating Income Net Other | 2.3 M | 2.5 M | |
| Change To Netincome | 93.3 M | 98 M | |
| Net Loss | (4.04) | (4.24) | |
| Income Quality | 0.41 | 0.63 | |
| Net Income Per E B T | 1.01 | 0.80 |
IRhythm Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on IRhythm Technologies. 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 IRhythm Technologies 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 IRhythm Technologies' important profitability drivers and their relationship over time.
Use IRhythm Technologies 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 IRhythm Technologies 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 IRhythm Technologies will appreciate offsetting losses from the drop in the long position's value.IRhythm Technologies Pair Trading
iRhythm Technologies Pair Trading Analysis
The ability to find closely correlated positions to IRhythm Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IRhythm Technologies 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 IRhythm Technologies - 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 iRhythm Technologies to buy it.
The correlation of IRhythm Technologies 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 IRhythm Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iRhythm Technologies 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 IRhythm Technologies 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 IRhythm Technologies position
In addition to having IRhythm Technologies 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?
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Check out Risk vs Return Analysis. For information on how to trade IRhythm Stock refer to our How to Trade IRhythm Stock guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project IRhythm Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of iRhythm Technologies 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 IRhythm Technologies' income statement, its balance sheet, and the statement of cash flows.