Koninklijke Philips Gross Profit vs. Operating Margin
| PHI1 Stock | EUR 24.94 0.08 0.32% |
For Koninklijke Philips profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Koninklijke Philips to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Koninklijke Philips NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Koninklijke Philips's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Koninklijke Philips NV over time as well as its relative position and ranking within its peers.
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Koninklijke Philips Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Koninklijke Philips's current stock value. Our valuation model uses many indicators to compare Koninklijke Philips value to that of its competitors to determine the firm's financial worth. Koninklijke Philips NV is considered to be number one stock in gross profit category among its peers. It also is considered to be number one stock in operating margin category among its peers . 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 Koninklijke Philips' earnings, one of the primary drivers of an investment's value.Koninklijke Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
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Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
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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.
Koninklijke Operating Margin Comparison
Koninklijke Philips is currently under evaluation in operating margin category among its peers.
Koninklijke Philips Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Koninklijke Philips, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Koninklijke Philips will eventually generate negative long term returns. The profitability progress is the general direction of Koninklijke Philips' change in net profit over the period of time. It can combine multiple indicators of Koninklijke Philips, 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.
Koninklijke Philips N.V. operates as a health technology company worldwide. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands. KONINKL PHILIPS operates under Diagnostics Research classification in Germany and is traded on Frankfurt Stock Exchange. It employs 77748 people.
Koninklijke Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Koninklijke Philips. 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 Koninklijke Philips 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 Koninklijke Philips' important profitability drivers and their relationship over time.
Use Koninklijke Philips 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 Koninklijke Philips 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 Koninklijke Philips will appreciate offsetting losses from the drop in the long position's value.Koninklijke Philips Pair Trading
Koninklijke Philips NV Pair Trading Analysis
The ability to find closely correlated positions to Koninklijke Philips could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Koninklijke Philips 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 Koninklijke Philips - 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 Koninklijke Philips NV to buy it.
The correlation of Koninklijke Philips 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 Koninklijke Philips moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Koninklijke Philips 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 Koninklijke Philips 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 Koninklijke Philips position
In addition to having Koninklijke Philips 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 Banks - Regional Thematic Idea Now
Banks - Regional
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Banks - Regional theme has 19 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 Banks - Regional Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Koninklijke Stock
When determining whether Koninklijke Philips is a strong investment it is important to analyze Koninklijke Philips' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Koninklijke Philips' future performance. For an informed investment choice regarding Koninklijke Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Koninklijke Philips' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Koninklijke Philips 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 Koninklijke Philips' income statement, its balance sheet, and the statement of cash flows.