Jerash Holdings Operating Margin vs. Return On Asset
| JRSH Stock | USD 3.36 0.03 0.90% |
For Jerash Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jerash Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jerash Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jerash Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jerash Holdings over time as well as its relative position and ranking within its peers.
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Is Apparel, Accessories & Luxury Goods 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 Jerash Holdings. If investors know Jerash 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 Jerash Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Jerash Holdings is measured differently than its book value, which is the value of Jerash that is recorded on the company's balance sheet. Investors also form their own opinion of Jerash Holdings' value that differs from its market value or its book value, called intrinsic value, which is Jerash Holdings' 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 Jerash Holdings' market value can be influenced by many factors that don't directly affect Jerash Holdings' 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 Jerash Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Jerash Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jerash Holdings' 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.
Jerash Holdings Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Jerash Holdings's current stock value. Our valuation model uses many indicators to compare Jerash Holdings value to that of its competitors to determine the firm's financial worth. Jerash Holdings is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers . 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 Jerash Holdings' earnings, one of the primary drivers of an investment's value.Jerash 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.
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| = | (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.
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| = | -0.0203 |
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.
Jerash Return On Asset Comparison
Jerash Holdings is currently under evaluation in return on asset category among its peers.
Jerash Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Jerash Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jerash Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Jerash Holdings' change in net profit over the period of time. It can combine multiple indicators of Jerash Holdings, 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.
Jerash Holdings , Inc., through its subsidiaries, manufactures and exports customized and readymade sport and outerwear. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey. Jerash Holdings operates under Apparel Manufacturing classification in the United States and is traded on NASDAQ Exchange. It employs 5600 people.
Jerash Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Jerash Holdings. 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 Jerash Holdings 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 Jerash Holdings' important profitability drivers and their relationship over time.
Use Jerash Holdings 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 Jerash Holdings 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 Jerash Holdings will appreciate offsetting losses from the drop in the long position's value.Jerash Holdings Pair Trading
Jerash Holdings Pair Trading Analysis
The ability to find closely correlated positions to Jerash Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jerash Holdings 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 Jerash Holdings - 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 Jerash Holdings to buy it.
The correlation of Jerash Holdings 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 Jerash Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jerash Holdings 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 Jerash Holdings 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 Jerash Holdings position
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Check out Risk vs Return Analysis. For more detail on how to invest in Jerash Stock please use our How to Invest in Jerash Holdings guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project Jerash Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jerash Holdings 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 Jerash Holdings' income statement, its balance sheet, and the statement of cash flows.