Macfarlane Group Profitability Analysis
| MACF Stock | 105.00 1.00 0.96% |
Net Income | First Reported 1985-01-31 | Previous Quarter 7.5 M | Current Value 7.2 M | Quarterly Volatility 2.1 M |
For Macfarlane Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Macfarlane Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Macfarlane Group PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Macfarlane Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Macfarlane Group PLC over time as well as its relative position and ranking within its peers.
Macfarlane |
Macfarlane Group PLC Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Macfarlane Group's current stock value. Our valuation model uses many indicators to compare Macfarlane Group value to that of its competitors to determine the firm's financial worth. Macfarlane Group PLC is regarded fifth in return on equity category among its peers. It is regarded third in return on asset category among its peers reporting about 0.48 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Macfarlane Group PLC is roughly 2.10 . 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 Macfarlane Group's earnings, one of the primary drivers of an investment's value.Macfarlane 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.
Macfarlane Group |
| = | 0.13 |
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.
Macfarlane Group |
| = | 0.0612 |
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.
Macfarlane Return On Asset Comparison
Macfarlane Group is currently under evaluation in return on asset category among its peers.
Macfarlane Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Macfarlane Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Macfarlane Group will eventually generate negative long term returns. The profitability progress is the general direction of Macfarlane Group's change in net profit over the period of time. It can combine multiple indicators of Macfarlane Group, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 241 K | 253.1 K | |
| Operating Income | 22.3 M | 23.4 M | |
| Income Before Tax | 20.3 M | 21.3 M | |
| Total Other Income Expense Net | -2 M | -2.1 M | |
| Net Income | 15 M | 15.7 M | |
| Income Tax Expense | 5.3 M | 5.6 M | |
| Net Income Applicable To Common Shares | 18 M | 18.9 M | |
| Net Income From Continuing Ops | 15 M | 10 M | |
| Net Interest Income | -1.8 M | -1.9 M | |
| Interest Income | 510 K | 815.4 K | |
| Change To Netincome | -406.8 K | -386.5 K |
Macfarlane Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Macfarlane Group. 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 Macfarlane Group 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 Macfarlane Group's important profitability drivers and their relationship over time.
Use Macfarlane Group 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 Macfarlane Group 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 Macfarlane Group will appreciate offsetting losses from the drop in the long position's value.Macfarlane Group Pair Trading
Macfarlane Group PLC Pair Trading Analysis
The ability to find closely correlated positions to Macfarlane Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Macfarlane Group 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 Macfarlane Group - 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 Macfarlane Group PLC to buy it.
The correlation of Macfarlane Group 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 Macfarlane Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Macfarlane Group PLC 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 Macfarlane Group 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 Macfarlane Group position
In addition to having Macfarlane Group 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 Macfarlane Stock Analysis
When running Macfarlane Group's price analysis, check to measure Macfarlane Group'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 Macfarlane Group is operating at the current time. Most of Macfarlane Group's value examination focuses on studying past and present price action to predict the probability of Macfarlane Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Macfarlane Group's price. Additionally, you may evaluate how the addition of Macfarlane Group to your portfolios can decrease your overall portfolio volatility.