LOREAL ADR Gross Profit vs. Return On Asset

LORA Stock  EUR 66.50  0.50  0.75%   
Considering LOREAL ADR's profitability and operating efficiency indicators, LOREAL ADR 15EO may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess LOREAL ADR's ability to earn profits and add value for shareholders.
For LOREAL ADR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LOREAL ADR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LOREAL ADR 15EO utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LOREAL ADR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LOREAL ADR 15EO over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between LOREAL ADR's value and its price as these two are different measures arrived at by different means. Investors typically determine if LOREAL ADR is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LOREAL ADR'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.

LOREAL ADR 15EO Return On Asset vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LOREAL ADR's current stock value. Our valuation model uses many indicators to compare LOREAL ADR value to that of its competitors to determine the firm's financial worth.
LOREAL ADR 15EO is currently regarded as number one stock in gross profit category among its peers. It also is currently regarded as number one stock in return on asset category among its peers . The ratio of Gross Profit to Return On Asset for LOREAL ADR 15EO is about  251,627,637,131 . 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 LOREAL ADR's earnings, one of the primary drivers of an investment's value.

LOREAL Return On Asset 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.

LOREAL ADR

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
23.85 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.
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.

LOREAL ADR

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0948
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.

LOREAL Return On Asset Comparison

LOREAL ADR is currently under evaluation in return on asset category among its peers.

LOREAL ADR Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LOREAL ADR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LOREAL ADR will eventually generate negative long term returns. The profitability progress is the general direction of LOREAL ADR's change in net profit over the period of time. It can combine multiple indicators of LOREAL ADR, 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.
LOral S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company was founded in 1909 and is headquartered in Clichy, France. OREAL ADR is traded on Frankfurt Stock Exchange in Germany.

LOREAL Profitability Driver Comparison

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

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

LOREAL ADR Pair Trading

LOREAL ADR 15EO Pair Trading Analysis

The ability to find closely correlated positions to LOREAL ADR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LOREAL ADR 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 LOREAL ADR - 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 LOREAL ADR 15EO to buy it.
The correlation of LOREAL ADR 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 LOREAL ADR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LOREAL ADR 15EO 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 LOREAL ADR 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 LOREAL ADR position

In addition to having LOREAL ADR 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 Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 41 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 Stores Theme or any other thematic opportunities.
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Other Information on Investing in LOREAL Stock

To fully project LOREAL ADR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LOREAL ADR 15EO 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 LOREAL ADR's income statement, its balance sheet, and the statement of cash flows.
Potential LOREAL ADR investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although LOREAL ADR investors may work on each financial statement separately, they are all related. The changes in LOREAL ADR's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LOREAL ADR'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.