NIIT Profit Margin vs. Return On Asset

NIITLTD Stock   186.01  10.67  5.43%   
Based on NIIT's profitability indicators, NIIT Limited may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess NIIT's ability to earn profits and add value for shareholders.
For NIIT profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NIIT to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NIIT Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NIIT's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NIIT Limited 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 NIIT's value and its price as these two are different measures arrived at by different means. Investors typically determine if NIIT is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NIIT'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.

NIIT Limited Return On Asset vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NIIT's current stock value. Our valuation model uses many indicators to compare NIIT value to that of its competitors to determine the firm's financial worth.
NIIT Limited 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 . 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 NIIT's earnings, one of the primary drivers of an investment's value.

NIIT 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.

NIIT

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.14 %
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.

NIIT

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0081
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.

NIIT Return On Asset Comparison

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

NIIT Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NIIT, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NIIT will eventually generate negative long term returns. The profitability progress is the general direction of NIIT's change in net profit over the period of time. It can combine multiple indicators of NIIT, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income5.7 BB
Operating Income-171.5 M-163 M
Income Before Tax459.1 M436.2 M
Total Other Income Expense Net630.6 M753.5 M
Net Income457.8 M529.7 M
Income Tax Expense60 M57 M
Net Income From Continuing Ops399.1 M379.2 M
Net Income Applicable To Common Shares36.5 M34.7 M
Interest Income101.2 M96.2 M
Net Interest Income-14.1 M-14.8 M
Change To Netincome-253.1 M-265.8 M

NIIT Profitability Driver Comparison

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

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

NIIT Pair Trading

NIIT Limited Pair Trading Analysis

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

In addition to having NIIT 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 Precious Metals Thematic Idea Now

Precious Metals
Precious Metals Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 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 Precious Metals Theme or any other thematic opportunities.
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Other Information on Investing in NIIT Stock

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