Novartis Cash And Equivalents vs. Revenue
| NVSN Stock | MXN 1,960 0.00 0.00% |
For Novartis profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Novartis to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Novartis AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Novartis's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Novartis AG over time as well as its relative position and ranking within its peers.
Novartis |
Novartis AG Revenue vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Novartis's current stock value. Our valuation model uses many indicators to compare Novartis value to that of its competitors to determine the firm's financial worth. Novartis AG is considered to be number one stock in cash and equivalents category among its peers. It also is rated top company in revenue category among its peers totaling about 4.55 of Revenue per Cash And Equivalents. Comparative valuation analysis is a catch-all model that can be used if you cannot value Novartis by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Novartis' 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.Novartis Revenue vs. Cash And Equivalents
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.
Novartis |
| = | 11.4 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).
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Novartis |
| = | 51.83 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Novartis Revenue vs Competition
Novartis AG is rated top company in revenue category among its peers. Market size based on revenue of Drug Manufacturers—General industry is now estimated at about 279.73 Trillion. Novartis adds roughly 51.83 Billion in revenue claiming only tiny portion of equities under Drug Manufacturers—General industry.
Novartis Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Novartis, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Novartis will eventually generate negative long term returns. The profitability progress is the general direction of Novartis' change in net profit over the period of time. It can combine multiple indicators of Novartis, 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.
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company was incorporated in 1996 and is headquartered in Basel, Switzerland. NOVARTIS operates under Drug ManufacturersGeneral classification in Mexico and is traded on Mexico Stock Exchange. It employs 105794 people.
Novartis Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Novartis. 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 Novartis 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 Novartis' important profitability drivers and their relationship over time.
Use Novartis 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 Novartis 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 Novartis will appreciate offsetting losses from the drop in the long position's value.Novartis Pair Trading
Novartis AG Pair Trading Analysis
The ability to find closely correlated positions to Novartis could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Novartis 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 Novartis - 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 Novartis AG to buy it.
The correlation of Novartis 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 Novartis moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Novartis AG 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 Novartis 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 Novartis position
In addition to having Novartis 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 Small Growth Funds Thematic Idea Now
Small Growth Funds
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. The Small Growth Funds theme has 46 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 Small Growth Funds Theme or any other thematic opportunities.
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Additional Tools for Novartis Stock Analysis
When running Novartis' price analysis, check to measure Novartis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novartis is operating at the current time. Most of Novartis' value examination focuses on studying past and present price action to predict the probability of Novartis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novartis' price. Additionally, you may evaluate how the addition of Novartis to your portfolios can decrease your overall portfolio volatility.