Microsoft Corp Price To Book vs. Return On Asset
| MSFT Stock | 30.90 0.15 0.49% |
For Microsoft Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Microsoft Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Microsoft Corp CDR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Microsoft Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Microsoft Corp CDR over time as well as its relative position and ranking within its peers.
Microsoft |
Microsoft Corp CDR Return On Asset vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Microsoft Corp's current stock value. Our valuation model uses many indicators to compare Microsoft Corp value to that of its competitors to determine the firm's financial worth. Microsoft Corp CDR is considered to be number one stock in price to book category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about 0.01 of Return On Asset per Price To Book. The ratio of Price To Book to Return On Asset for Microsoft Corp CDR is roughly 72.89 . 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 Microsoft Corp's earnings, one of the primary drivers of an investment's value.Microsoft Return On Asset vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Microsoft Corp |
| = | 10.63 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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.
Microsoft Corp |
| = | 0.15 |
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.
Microsoft Return On Asset Comparison
Microsoft Corp is currently under evaluation in return on asset category among its peers.
Microsoft Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Microsoft Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Microsoft Corp will eventually generate negative long term returns. The profitability progress is the general direction of Microsoft Corp's change in net profit over the period of time. It can combine multiple indicators of Microsoft Corp, 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 | ||
| Net Interest Income | 222 M | 233.1 M | |
| Operating Income | 109.4 B | 75.8 B | |
| Net Income From Continuing Ops | 88.1 B | 62 B | |
| Income Before Tax | 107.8 B | 76.2 B | |
| Total Other Income Expense Net | -1.9 B | -1.8 B | |
| Net Income Applicable To Common Shares | 83.6 B | 51.5 B | |
| Net Income | 88.1 B | 62 B | |
| Income Tax Expense | 9.9 B | 8.6 B | |
| Interest Income | 3.2 B | 2.9 B | |
| Change To Netincome | 1.4 B | 1.5 B |
Microsoft Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Microsoft Corp. 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 Microsoft Corp 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 Microsoft Corp's important profitability drivers and their relationship over time.
Use Microsoft Corp 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 Microsoft Corp 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 Microsoft Corp will appreciate offsetting losses from the drop in the long position's value.Microsoft Corp Pair Trading
Microsoft Corp CDR Pair Trading Analysis
The ability to find closely correlated positions to Microsoft Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft Corp 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 Microsoft Corp - 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 Microsoft Corp CDR to buy it.
The correlation of Microsoft Corp 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 Microsoft Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft Corp CDR 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 Microsoft Corp 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 Microsoft Corp position
In addition to having Microsoft Corp 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 Strategy ETFs Thematic Idea Now
Strategy ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Strategy ETFs theme has 1282 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 Strategy ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in Microsoft Stock
To fully project Microsoft Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Microsoft Corp CDR 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 Microsoft Corp's income statement, its balance sheet, and the statement of cash flows.