ManpowerGroup Return On Equity vs. Cash And Equivalents
MAN Stock | USD 64.37 0.19 0.29% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.03994063 | Current Value 0.0734 | Quarterly Volatility 0.12490242 |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.2 | 0.1775 |
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Operating Profit Margin | 0.0197 | 0.0135 |
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For ManpowerGroup profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ManpowerGroup to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ManpowerGroup utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ManpowerGroup's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ManpowerGroup over time as well as its relative position and ranking within its peers.
ManpowerGroup |
Is Human Resource & Employment Services 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 ManpowerGroup. If investors know ManpowerGroup 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 ManpowerGroup 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 3.01 | Earnings Share 0.87 | Revenue Per Share 375.591 | Quarterly Revenue Growth (0.03) |
The market value of ManpowerGroup is measured differently than its book value, which is the value of ManpowerGroup that is recorded on the company's balance sheet. Investors also form their own opinion of ManpowerGroup's value that differs from its market value or its book value, called intrinsic value, which is ManpowerGroup'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 ManpowerGroup's market value can be influenced by many factors that don't directly affect ManpowerGroup'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 ManpowerGroup's value and its price as these two are different measures arrived at by different means. Investors typically determine if ManpowerGroup is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ManpowerGroup'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.
ManpowerGroup Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ManpowerGroup's current stock value. Our valuation model uses many indicators to compare ManpowerGroup value to that of its competitors to determine the firm's financial worth. ManpowerGroup is rated below average in return on equity category among its peers. It is regarded third in cash and equivalents category among its peers creating about 38,493,975,904 of Cash And Equivalents per Return On Equity. At this time, ManpowerGroup's Return On Equity 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 ManpowerGroup's earnings, one of the primary drivers of an investment's value.ManpowerGroup's Earnings Breakdown by Geography
ManpowerGroup Cash And Equivalents 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.
ManpowerGroup |
| = | 0.0166 |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
ManpowerGroup |
| = | 639 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
ManpowerGroup Cash And Equivalents Comparison
ManpowerGroup is currently under evaluation in cash and equivalents category among its peers.
ManpowerGroup Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ManpowerGroup, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ManpowerGroup will eventually generate negative long term returns. The profitability progress is the general direction of ManpowerGroup's change in net profit over the period of time. It can combine multiple indicators of ManpowerGroup, 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 | -466 M | -442.7 M | |
Operating Income | 255.8 M | 407.4 M | |
Income Before Tax | 205.9 M | 195.6 M | |
Total Other Income Expense Net | -49.9 M | -47.4 M | |
Net Income | 88.8 M | 84.4 M | |
Income Tax Expense | 117.1 M | 143.7 M | |
Net Income Applicable To Common Shares | 429.9 M | 308.7 M | |
Net Income From Continuing Ops | 222 M | 340.5 M | |
Interest Income | 32.4 M | 23.2 M | |
Net Interest Income | -42.5 M | -44.6 M | |
Change To Netincome | 49.1 M | 34.3 M | |
Net Income Per Share | 1.78 | 2.27 | |
Income Quality | 3.92 | 4.12 | |
Net Income Per E B T | 0.43 | 0.41 |
ManpowerGroup Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ManpowerGroup. 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 ManpowerGroup 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 ManpowerGroup's important profitability drivers and their relationship over time.
Use ManpowerGroup 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 ManpowerGroup 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 ManpowerGroup will appreciate offsetting losses from the drop in the long position's value.ManpowerGroup Pair Trading
ManpowerGroup Pair Trading Analysis
The ability to find closely correlated positions to ManpowerGroup could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ManpowerGroup 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 ManpowerGroup - 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 ManpowerGroup to buy it.
The correlation of ManpowerGroup 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 ManpowerGroup moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ManpowerGroup 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 ManpowerGroup 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 ManpowerGroup position
In addition to having ManpowerGroup 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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Check out Correlation Analysis. To learn how to invest in ManpowerGroup Stock, please use our How to Invest in ManpowerGroup guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project ManpowerGroup's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ManpowerGroup 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 ManpowerGroup's income statement, its balance sheet, and the statement of cash flows.