Lavipharm Current Ratio vs. Return On Asset
| LAVI Stock | EUR 0.71 0.01 1.39% |
For Lavipharm profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lavipharm to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lavipharm SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lavipharm's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lavipharm SA over time as well as its relative position and ranking within its peers.
Lavipharm |
Lavipharm SA Return On Asset vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lavipharm's current stock value. Our valuation model uses many indicators to compare Lavipharm value to that of its competitors to determine the firm's financial worth. Lavipharm SA is rated third overall in current ratio category among its peers. It is currently regarded as number one stock in return on asset category among its peers reporting about 0.03 of Return On Asset per Current Ratio. The ratio of Current Ratio to Return On Asset for Lavipharm SA is roughly 32.01 . 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 Lavipharm's earnings, one of the primary drivers of an investment's value.Lavipharm Return On Asset vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Lavipharm |
| = | 1.29 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
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.
Lavipharm |
| = | 0.0403 |
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.
Lavipharm Return On Asset Comparison
Lavipharm is currently under evaluation in return on asset category among its peers.
Lavipharm Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lavipharm, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lavipharm will eventually generate negative long term returns. The profitability progress is the general direction of Lavipharm's change in net profit over the period of time. It can combine multiple indicators of Lavipharm, 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.
Lavipharm S.A. develops, manufactures, markets, and distributes pharmaceutical, cosmetic, and consumer health products in Greece and internationally. Lavipharm S.A. was founded in 1911 and is based in Paiania, Greece. LAVIPHARM operates under Drug Manufacturers - Major classification in Greece and is traded on Athens Stock Exchange.
Lavipharm Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lavipharm. 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 Lavipharm 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 Lavipharm's important profitability drivers and their relationship over time.
Use Lavipharm 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 Lavipharm 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 Lavipharm will appreciate offsetting losses from the drop in the long position's value.Lavipharm Pair Trading
Lavipharm SA Pair Trading Analysis
The ability to find closely correlated positions to Lavipharm could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lavipharm 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 Lavipharm - 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 Lavipharm SA to buy it.
The correlation of Lavipharm 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 Lavipharm moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lavipharm SA 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 Lavipharm 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 Lavipharm position
In addition to having Lavipharm 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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Additional Tools for Lavipharm Stock Analysis
When running Lavipharm's price analysis, check to measure Lavipharm's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lavipharm is operating at the current time. Most of Lavipharm's value examination focuses on studying past and present price action to predict the probability of Lavipharm's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lavipharm's price. Additionally, you may evaluate how the addition of Lavipharm to your portfolios can decrease your overall portfolio volatility.