Karooooo Gross Profit vs. Profit Margin

KARO Stock  USD 44.36  3.25  7.91%   
Considering Karooooo's profitability and operating efficiency indicators, Karooooo is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in December. Profitability indicators assess Karooooo's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-12-31
Previous Quarter
2.7 B
Current Value
B
Quarterly Volatility
475.7 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 29th of November 2024, Price To Sales Ratio is likely to grow to 5.36. Also, Days Sales Outstanding is likely to grow to 90.59. At this time, Karooooo's Net Interest Income is very stable compared to the past year. As of the 29th of November 2024, Interest Income is likely to grow to about 41.4 M, though Accumulated Other Comprehensive Income is likely to grow to (5.7 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.750.6398
Fairly Up
Slightly volatile
Net Profit Margin0.20.1755
Fairly Up
Slightly volatile
Operating Profit Margin0.240.2479
Sufficiently Down
Slightly volatile
Pretax Profit Margin0.310.2534
Fairly Up
Very volatile
Return On Assets0.190.1714
Significantly Up
Slightly volatile
Return On Equity0.390.2493
Way Up
Pretty Stable
For Karooooo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Karooooo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Karooooo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Karooooo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Karooooo over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.
Is Application Software 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 Karooooo. If investors know Karooooo 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 Karooooo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.22
Dividend Share
19.257
Earnings Share
1.49
Revenue Per Share
140.909
Quarterly Revenue Growth
0.064
The market value of Karooooo is measured differently than its book value, which is the value of Karooooo that is recorded on the company's balance sheet. Investors also form their own opinion of Karooooo's value that differs from its market value or its book value, called intrinsic value, which is Karooooo'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 Karooooo's market value can be influenced by many factors that don't directly affect Karooooo'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 Karooooo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Karooooo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Karooooo'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.

Karooooo Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Karooooo's current stock value. Our valuation model uses many indicators to compare Karooooo value to that of its competitors to determine the firm's financial worth.
Karooooo is currently regarded as number one stock in gross profit category among its peers. It also is currently regarded as number one stock in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for Karooooo is about  11,786,281,120 . At this time, Karooooo's Gross Profit is very stable compared to the past year. 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 Karooooo's earnings, one of the primary drivers of an investment's value.

Karooooo Profit Margin 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.

Karooooo

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.27 B
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Karooooo

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.19 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Karooooo Profit Margin Comparison

Karooooo is currently under evaluation in profit margin category among its peers.

Karooooo Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Karooooo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Karooooo will eventually generate negative long term returns. The profitability progress is the general direction of Karooooo's change in net profit over the period of time. It can combine multiple indicators of Karooooo, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-6 B-5.7 B
Net Interest Income23.6 M24.8 M
Interest Income39.4 M41.4 M
Operating IncomeB652.6 M
Net Income From Continuing Ops754.2 M576 M
Income Before Tax1.1 B811.4 M
Total Other Income Expense Net23.2 M24.4 M
Net Income Applicable To Common Shares289.9 M405.1 M
Net Income1.1 B757 M
Income Tax Expense311.6 M235.5 M
Change To Netincome186.1 M195.4 M
Net Income Per Share 23.85  15.15 
Income Quality 0.90  1.06 
Net Income Per E B T 0.69  0.53 

Karooooo Profitability Driver Comparison

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

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

Karooooo Pair Trading

Karooooo Pair Trading Analysis

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

In addition to having Karooooo 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 Tech Growth Thematic Idea Now

Tech Growth
Tech Growth Theme
Instruments that are typically traded at high earnings multiples compared to their competitors and other sectors and have been known to drive market cycles frequently. The Tech Growth theme has 66 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 Tech Growth Theme or any other thematic opportunities.
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When determining whether Karooooo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Karooooo'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 Karooooo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Karooooo Stock:
Check out Correlation Analysis.
To learn how to invest in Karooooo Stock, please use our How to Invest in Karooooo guide.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.
To fully project Karooooo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Karooooo 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 Karooooo's income statement, its balance sheet, and the statement of cash flows.
Potential Karooooo investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Karooooo investors may work on each financial statement separately, they are all related. The changes in Karooooo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Karooooo'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.