Novozymes A/S Return On Equity vs. Return On Asset
| NVZMF Stock | USD 59.48 1.98 3.44% |
For Novozymes A/S profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Novozymes A/S to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Novozymes AS B utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Novozymes A/S's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Novozymes AS B over time as well as its relative position and ranking within its peers.
Novozymes |
Novozymes AS B Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Novozymes A/S's current stock value. Our valuation model uses many indicators to compare Novozymes A/S value to that of its competitors to determine the firm's financial worth. Novozymes AS B is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about 0.38 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Novozymes AS B is roughly 2.63 . 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 Novozymes A/S's earnings, one of the primary drivers of an investment's value.Novozymes Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Novozymes A/S |
| = | 0.28 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
Novozymes A/S |
| = | 0.11 |
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.
Novozymes Return On Asset Comparison
Novozymes is currently under evaluation in return on asset category among its peers.
Novozymes A/S Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Novozymes A/S, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Novozymes A/S will eventually generate negative long term returns. The profitability progress is the general direction of Novozymes A/S's change in net profit over the period of time. It can combine multiple indicators of Novozymes A/S, 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.
Novozymes AS produces and sells industrial enzymes, microorganisms, and probiotics in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company was founded in 1925 and is headquartered in Bagsvaerd, Denmark. NOVOZYMES is traded on OTC Exchange in the United States.
Novozymes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Novozymes A/S. 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 Novozymes A/S 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 Novozymes A/S's important profitability drivers and their relationship over time.
Use Novozymes A/S 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 Novozymes A/S 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 Novozymes A/S will appreciate offsetting losses from the drop in the long position's value.Novozymes A/S Pair Trading
Novozymes AS B Pair Trading Analysis
The ability to find closely correlated positions to Novozymes A/S could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Novozymes A/S 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 Novozymes A/S - 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 Novozymes AS B to buy it.
The correlation of Novozymes A/S 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 Novozymes A/S moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Novozymes AS B 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 Novozymes A/S 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 Novozymes A/S position
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Other Information on Investing in Novozymes Pink Sheet
To fully project Novozymes A/S's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Novozymes AS B 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 Novozymes A/S's income statement, its balance sheet, and the statement of cash flows.