Procter Gamble Return On Asset vs. Operating Margin
| PG Stock | MXN 3,616 86.00 2.44% |
For Procter Gamble profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Procter Gamble to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Procter Gamble DRC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Procter Gamble's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Procter Gamble DRC over time as well as its relative position and ranking within its peers.
Procter |
Procter Gamble DRC Operating Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Procter Gamble's current stock value. Our valuation model uses many indicators to compare Procter Gamble value to that of its competitors to determine the firm's financial worth. Procter Gamble DRC is considered to be number one stock in return on asset category among its peers. It also is considered to be number one stock in operating margin category among its peers reporting about 2.38 of Operating Margin per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value Procter Gamble by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Procter Gamble'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.Procter Operating Margin vs. Return On Asset
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.
Procter Gamble |
| = | 0.0955 |
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.
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.
Procter Gamble |
| = | 0.23 % |
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.
Procter Operating Margin Comparison
Procter Gamble is currently under evaluation in operating margin category among its peers.
Procter Gamble Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Procter Gamble, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Procter Gamble will eventually generate negative long term returns. The profitability progress is the general direction of Procter Gamble's change in net profit over the period of time. It can combine multiple indicators of Procter Gamble, 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.
The Procter Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. The Procter Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio. PROCTER GAMBLE operates under Household Personal Products classification in Mexico and is traded on Mexico Stock Exchange. It employs 101000 people.
Procter Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Procter Gamble. 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 Procter Gamble 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 Procter Gamble's important profitability drivers and their relationship over time.
Use Procter Gamble 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 Procter Gamble 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 Procter Gamble will appreciate offsetting losses from the drop in the long position's value.Procter Gamble Pair Trading
Procter Gamble DRC Pair Trading Analysis
The ability to find closely correlated positions to Procter Gamble could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Procter Gamble 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 Procter Gamble - 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 Procter Gamble DRC to buy it.
The correlation of Procter Gamble 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 Procter Gamble moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Procter Gamble DRC 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 Procter Gamble 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 Procter Gamble position
In addition to having Procter Gamble 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?
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Additional Tools for Procter Stock Analysis
When running Procter Gamble's price analysis, check to measure Procter Gamble's 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 Procter Gamble is operating at the current time. Most of Procter Gamble's value examination focuses on studying past and present price action to predict the probability of Procter Gamble's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Procter Gamble's price. Additionally, you may evaluate how the addition of Procter Gamble to your portfolios can decrease your overall portfolio volatility.