Nordic Semiconductor Profit Margin vs. Return On Asset

NDCVF Stock  USD 9.00  0.26  2.97%   
Considering Nordic Semiconductor's profitability and operating efficiency indicators, Nordic Semiconductor ASA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Nordic Semiconductor's ability to earn profits and add value for shareholders.
For Nordic Semiconductor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nordic Semiconductor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nordic Semiconductor ASA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nordic Semiconductor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nordic Semiconductor ASA over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Nordic Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nordic Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordic Semiconductor'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.

Nordic Semiconductor ASA Return On Asset vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nordic Semiconductor's current stock value. Our valuation model uses many indicators to compare Nordic Semiconductor value to that of its competitors to determine the firm's financial worth.
Nordic Semiconductor ASA is considered to be number one stock in profit margin category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about  0.93  of Return On Asset per Profit Margin. The ratio of Profit Margin to Return On Asset for Nordic Semiconductor ASA is roughly  1.07 . 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 Nordic Semiconductor's earnings, one of the primary drivers of an investment's value.

Nordic Return On Asset vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Nordic Semiconductor

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.16 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.

Nordic Semiconductor

Return On Asset

 = 

Net Income

Total Assets

 = 
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.

Nordic Return On Asset Comparison

Nordic Semiconductor is currently under evaluation in return on asset category among its peers.

Nordic Semiconductor Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nordic Semiconductor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nordic Semiconductor will eventually generate negative long term returns. The profitability progress is the general direction of Nordic Semiconductor's change in net profit over the period of time. It can combine multiple indicators of Nordic Semiconductor, 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.
Nordic Semiconductor ASA, a fabless semiconductor company, designs, develops, markets, and sells integrated circuits and related solutions for short-and long-range wireless applications in Europe, the Americas, and the AsiaPacific. The company was founded in 1983 and is headquartered in Trondheim, Norway. Nordic Vlsi operates under Semiconductors classification in the United States and is traded on OTC Exchange. It employs 1384 people.

Nordic Profitability Driver Comparison

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

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Other Information on Investing in Nordic Pink Sheet

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