Oriola Oyj Return On Equity vs. Return On Asset

O5O Stock  EUR 0.90  0.04  4.65%   
Taking into consideration Oriola Oyj's profitability measurements, Oriola Oyj may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Oriola Oyj's ability to earn profits and add value for shareholders.
For Oriola Oyj profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Oriola Oyj to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Oriola Oyj utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Oriola Oyj's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Oriola Oyj over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Oriola Oyj's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oriola Oyj is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oriola Oyj'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.

Oriola Oyj Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Oriola Oyj's current stock value. Our valuation model uses many indicators to compare Oriola Oyj value to that of its competitors to determine the firm's financial worth.
Oriola Oyj is regarded third in return on equity category among its peers. It also is regarded third in return on asset category among its peers reporting about  0.55  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Oriola Oyj is roughly  1.82 . 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 Oriola Oyj's earnings, one of the primary drivers of an investment's value.

Oriola 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.

Oriola Oyj

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0217
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.

Oriola Oyj

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0119
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.

Oriola Return On Asset Comparison

Oriola Oyj is regarded second in return on asset category among its peers.

Oriola Oyj Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Oriola Oyj, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Oriola Oyj will eventually generate negative long term returns. The profitability progress is the general direction of Oriola Oyj's change in net profit over the period of time. It can combine multiple indicators of Oriola Oyj, 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.
Oriola Oyj provides healthcare and wellbeing products in Sweden, Finland, and internationally.The company offers various range of OTC and traded good, vitamins, dietary supplements, pharmaceutical cosmetics, skincare products, tests, sports drinks, and wound care products. The company was formerly known as Oriola-KD Oyj and changed its name to Oriola Oyj in April 2017. ORIOLA OYJ operates under Pharmaceutical Retailers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2768 people.

Oriola Profitability Driver Comparison

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

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

Oriola Oyj Pair Trading

Oriola Oyj Pair Trading Analysis

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

In addition to having Oriola Oyj 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.

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Run Climate Change Thematic Idea Now

Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 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 Climate Change Theme or any other thematic opportunities.
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Other Information on Investing in Oriola Stock

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