Coffee Holding Return On Equity vs. Return On Asset
| JVA Stock | USD 3.63 0.24 7.08% |
For Coffee Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Coffee Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Coffee Holding Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Coffee Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Coffee Holding Co over time as well as its relative position and ranking within its peers.
Coffee |
Is Wholesale 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 Coffee Holding. If investors know Coffee 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 Coffee Holding 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 Coffee Holding is measured differently than its book value, which is the value of Coffee that is recorded on the company's balance sheet. Investors also form their own opinion of Coffee Holding's value that differs from its market value or its book value, called intrinsic value, which is Coffee Holding's 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 Coffee Holding's market value can be influenced by many factors that don't directly affect Coffee Holding's 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 Coffee Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coffee Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coffee Holding'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.
Coffee Holding Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Coffee Holding's current stock value. Our valuation model uses many indicators to compare Coffee Holding value to that of its competitors to determine the firm's financial worth. Coffee Holding Co is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about 0.57 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Coffee Holding Co is roughly 1.77 . 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 Coffee Holding's earnings, one of the primary drivers of an investment's value.Coffee 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.
Coffee Holding |
| = | 0.0466 |
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.
Coffee Holding |
| = | 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.
Coffee Return On Asset Comparison
Coffee Holding is currently under evaluation in return on asset category among its peers.
Coffee Holding Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Coffee Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Coffee Holding will eventually generate negative long term returns. The profitability progress is the general direction of Coffee Holding's change in net profit over the period of time. It can combine multiple indicators of Coffee Holding, 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.
Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Australia, Canada, England, and China. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York. Coffee Holding operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 75 people.
Coffee Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Coffee Holding. 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 Coffee Holding 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 Coffee Holding's important profitability drivers and their relationship over time.
Use Coffee Holding 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 Coffee Holding 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 Coffee Holding will appreciate offsetting losses from the drop in the long position's value.Coffee Holding Pair Trading
Coffee Holding Co Pair Trading Analysis
The ability to find closely correlated positions to Coffee Holding could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coffee Holding 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 Coffee Holding - 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 Coffee Holding Co to buy it.
The correlation of Coffee Holding 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 Coffee Holding moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coffee Holding 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 Coffee Holding 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 Coffee Holding position
In addition to having Coffee Holding 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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Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
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To fully project Coffee Holding's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Coffee Holding 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 Coffee Holding's income statement, its balance sheet, and the statement of cash flows.