Lmp Automotive Return On Asset vs. Return On Equity
| LMPXDelisted Stock | USD 7.00 0.50 7.69% |
For Lmp Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lmp Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lmp Automotive Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lmp Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lmp Automotive Holdings over time as well as its relative position and ranking within its peers.
Lmp |
Lmp Automotive Holdings Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lmp Automotive's current stock value. Our valuation model uses many indicators to compare Lmp Automotive value to that of its competitors to determine the firm's financial worth. Lmp Automotive Holdings is rated below average in return on asset category among its peers. It is rated below average in return on equity category among its peers reporting about 0.04 of Return On Equity per Return On Asset. The ratio of Return On Asset to Return On Equity for Lmp Automotive Holdings is roughly 26.79 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lmp Automotive by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lmp Automotive's OTC Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Lmp Return On Equity vs. Return On Asset
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.
Lmp Automotive |
| = | 0.0509 |
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.
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.
Lmp Automotive |
| = | 0.0019 |
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.
Lmp Return On Equity Comparison
Lmp Automotive is currently under evaluation in return on equity category among its peers.
Lmp Automotive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lmp Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lmp Automotive will eventually generate negative long term returns. The profitability progress is the general direction of Lmp Automotive's change in net profit over the period of time. It can combine multiple indicators of Lmp Automotive, 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.
LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida. Lmp Automotive operates under Auto Truck Dealerships classification in the United States and is traded on OTC Exchange. It employs 17 people.
Lmp Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lmp Automotive. 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 Lmp Automotive 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 Lmp Automotive's important profitability drivers and their relationship over time.
Use Lmp Automotive 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 Lmp Automotive 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 Lmp Automotive will appreciate offsetting losses from the drop in the long position's value.Lmp Automotive Pair Trading
Lmp Automotive Holdings Pair Trading Analysis
The ability to find closely correlated positions to Lmp Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lmp Automotive 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 Lmp Automotive - 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 Lmp Automotive Holdings to buy it.
The correlation of Lmp Automotive 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 Lmp Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lmp Automotive 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 Lmp Automotive 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 Lmp Automotive position
In addition to having Lmp Automotive 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 FinTech Thematic Idea Now
FinTech
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The FinTech theme has 81 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 FinTech Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Consideration for investing in Lmp OTC Stock
If you are still planning to invest in Lmp Automotive Holdings check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Lmp Automotive's history and understand the potential risks before investing.
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |