POLAR POWER Return On Asset vs. Return On Equity
| PPW Stock | EUR 2.88 0.00 0.00% |
For POLAR POWER profitability analysis, we use financial ratios and fundamental drivers that measure the ability of POLAR POWER to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well POLAR POWER INC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between POLAR POWER's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of POLAR POWER INC over time as well as its relative position and ranking within its peers.
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POLAR POWER INC Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining POLAR POWER's current stock value. Our valuation model uses many indicators to compare POLAR POWER value to that of its competitors to determine the firm's financial worth. POLAR POWER INC 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 return on equity 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 POLAR POWER's earnings, one of the primary drivers of an investment's value.POLAR Return On Equity 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.
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| = | -0.0901 |
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.
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.
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| = | -0.18 |
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.
POLAR Return On Equity Comparison
POLAR POWER is currently under evaluation in return on equity category among its peers.
POLAR POWER Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in POLAR POWER, profitability is also one of the essential criteria for including it into their portfolios because, without profit, POLAR POWER will eventually generate negative long term returns. The profitability progress is the general direction of POLAR POWER's change in net profit over the period of time. It can combine multiple indicators of POLAR POWER, 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.
Polar Power, Inc. designs, manufactures, and sells direct current , power generators, renewable energy, and cooling systems in the United States and internationally. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California. POLAR POWER operates under Electrical Equipment Parts classification in Germany and is traded on Frankfurt Stock Exchange. It employs 106 people.
POLAR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on POLAR POWER. 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 POLAR POWER 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 POLAR POWER's important profitability drivers and their relationship over time.
Use POLAR POWER 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 POLAR POWER 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 POLAR POWER will appreciate offsetting losses from the drop in the long position's value.POLAR POWER Pair Trading
POLAR POWER INC Pair Trading Analysis
The ability to find closely correlated positions to POLAR POWER could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace POLAR POWER 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 POLAR POWER - 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 POLAR POWER INC to buy it.
The correlation of POLAR POWER 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 POLAR POWER moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if POLAR POWER INC 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 POLAR POWER 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 POLAR POWER position
In addition to having POLAR POWER 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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Other Information on Investing in POLAR Stock
To fully project POLAR POWER's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of POLAR POWER INC 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 POLAR POWER's income statement, its balance sheet, and the statement of cash flows.