NorthWest Healthcare Operating Margin vs. Return On Asset

NWH-UN Stock  CAD 4.89  0.05  1.01%   
Based on the measurements of profitability obtained from NorthWest Healthcare's financial statements, NorthWest Healthcare Properties 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 NorthWest Healthcare's ability to earn profits and add value for shareholders.

NorthWest Healthcare Operating Profit Margin

(0.51)

At present, NorthWest Healthcare's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.25, whereas Days Sales Outstanding is forecasted to decline to 24.10. At present, NorthWest Healthcare's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 19.5 M, whereas Accumulated Other Comprehensive Income is projected to grow to (278.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.7611
Way Down
Slightly volatile
For NorthWest Healthcare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NorthWest Healthcare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NorthWest Healthcare Properties utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NorthWest Healthcare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NorthWest Healthcare Properties 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 NorthWest Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if NorthWest Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NorthWest Healthcare'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.

NorthWest Healthcare Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NorthWest Healthcare's current stock value. Our valuation model uses many indicators to compare NorthWest Healthcare value to that of its competitors to determine the firm's financial worth.
NorthWest Healthcare Properties is regarded third in operating margin category among its peers. It is regarded fourth in return on asset category among its peers reporting about  0.04  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for NorthWest Healthcare Properties is roughly  22.82 . At present, NorthWest Healthcare's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value NorthWest Healthcare by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NorthWest Healthcare'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.

NorthWest Return On Asset 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.

NorthWest Healthcare

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.66 %
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.
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.

NorthWest Healthcare

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0291
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.

NorthWest Return On Asset Comparison

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

NorthWest Healthcare Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NorthWest Healthcare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NorthWest Healthcare will eventually generate negative long term returns. The profitability progress is the general direction of NorthWest Healthcare's change in net profit over the period of time. It can combine multiple indicators of NorthWest Healthcare, 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 Income-293.4 M-278.7 M
Operating Income-275.3 M-261.6 M
Total Other Income Expense Net-223.7 M-212.5 M
Net Loss-480.7 M-456.7 M
Income Tax Expense-18.3 M-17.4 M
Net Loss-480.7 M-456.7 M
Income Before Tax-499 M-474.1 M
Net Income Applicable To Common Shares504 M529.2 M
Net Interest Income-187.4 M-196.7 M
Interest Income18.6 M19.5 M
Change To Netincome-276.5 M-262.7 M
Net Loss(1.42)(1.35)
Income Quality(0.22)(0.21)
Net Income Per E B T 0.70  0.44 

NorthWest Profitability Driver Comparison

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

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

NorthWest Healthcare Pair Trading

NorthWest Healthcare Properties Pair Trading Analysis

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

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Other Information on Investing in NorthWest Stock

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