NVIDIA Operating Margin vs. Cash And Equivalents
| NVDC34 Stock | BRL 16.85 0.07 0.42% |
For NVIDIA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVIDIA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NVIDIA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVIDIA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NVIDIA over time as well as its relative position and ranking within its peers.
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NVIDIA Cash And Equivalents vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NVIDIA's current stock value. Our valuation model uses many indicators to compare NVIDIA value to that of its competitors to determine the firm's financial worth. NVIDIA is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in cash and equivalents category among its peers creating about 30,564,263,323 of Cash And Equivalents per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value NVIDIA by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NVIDIA's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.NVIDIA Cash And Equivalents vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.26 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.
NVIDIA |
| = | 7.8 B |
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).
NVIDIA Cash And Equivalents Comparison
NVIDIA is currently under evaluation in cash and equivalents category among its peers.
NVIDIA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NVIDIA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVIDIA will eventually generate negative long term returns. The profitability progress is the general direction of NVIDIA's change in net profit over the period of time. It can combine multiple indicators of NVIDIA, 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.
NVIDIA Corporation operates as a visual computing company worldwide. The company was founded in 1993 and is headquartered in Santa Clara, California. NVIDIA CORP operates under Semiconductors classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 13277 people.
NVIDIA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NVIDIA. 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 NVIDIA 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 NVIDIA's important profitability drivers and their relationship over time.
Use NVIDIA 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 NVIDIA 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 NVIDIA will appreciate offsetting losses from the drop in the long position's value.NVIDIA Pair Trading
NVIDIA Pair Trading Analysis
The ability to find closely correlated positions to NVIDIA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVIDIA 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 NVIDIA - 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 NVIDIA to buy it.
The correlation of NVIDIA 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 NVIDIA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NVIDIA 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 NVIDIA 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 NVIDIA position
In addition to having NVIDIA 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 Video Games Thematic Idea Now
Video Games
Companies that are involved in the building and marketing of video games or gaming software. The Video Games theme has 24 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 Video Games Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in NVIDIA Stock
When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:Check out Correlation Analysis. For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
To fully project NVIDIA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NVIDIA 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 NVIDIA's income statement, its balance sheet, and the statement of cash flows.