Prada SpA Profit Margin vs. Net Income

Based on the key profitability measurements obtained from Prada SpA's financial statements, Prada SpA 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 Prada SpA's ability to earn profits and add value for shareholders.
For Prada SpA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Prada SpA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Prada SpA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Prada SpA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Prada SpA over time as well as its relative position and ranking within its peers.
  
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
Please note, there is a significant difference between Prada SpA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Prada SpA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prada SpA'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.

Prada SpA Net Income vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Prada SpA's current stock value. Our valuation model uses many indicators to compare Prada SpA value to that of its competitors to determine the firm's financial worth.
Prada SpA is rated below average in profit margin category among its peers. It is rated below average in net income category among its peers making up about  2,876,383,187  of Net Income per Profit Margin. 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 Prada SpA's earnings, one of the primary drivers of an investment's value.

Prada Net Income vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Prada SpA

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.10 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Prada SpA

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
294.25 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Prada Net Income Comparison

Prada SpA is currently under evaluation in net income category among its peers.

Prada SpA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Prada SpA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Prada SpA will eventually generate negative long term returns. The profitability progress is the general direction of Prada SpA's change in net profit over the period of time. It can combine multiple indicators of Prada SpA, 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.
Prada S.p.A., together with its subsidiaries, designs, produces, and distributes leather goods, handbags, footwear, apparel, and accessories in Europe, the Americas, the Asia Pacific, Japan, the Middle East, and Africa. The company was founded in 1913 and is headquartered in Milan, Italy. PRADA SPA operates under Luxury Goods classification in the United States and is traded on OTC Exchange. It employs 12985 people.

Prada Profitability Driver Comparison

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

Use Prada SpA 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 Prada SpA 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 Prada SpA will appreciate offsetting losses from the drop in the long position's value.

Prada SpA Pair Trading

Prada SpA Pair Trading Analysis

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

In addition to having Prada SpA 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 Copper Thematic Idea Now

Copper
Copper Theme
Companies involved in production of copper. The Copper theme has 39 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 Copper Theme or any other thematic opportunities.
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Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.

Other Tools for Prada Pink Sheet

When running Prada SpA's price analysis, check to measure Prada SpA'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 Prada SpA is operating at the current time. Most of Prada SpA's value examination focuses on studying past and present price action to predict the probability of Prada SpA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prada SpA's price. Additionally, you may evaluate how the addition of Prada SpA to your portfolios can decrease your overall portfolio volatility.
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