Resmed Profit Margin vs. Operating Margin
| RMD Stock | 38.28 0.09 0.24% |
For Resmed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Resmed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Resmed Inc DRC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Resmed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Resmed Inc DRC over time as well as its relative position and ranking within its peers.
Resmed |
Resmed Inc DRC Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Resmed's current stock value. Our valuation model uses many indicators to compare Resmed value to that of its competitors to determine the firm's financial worth. Resmed Inc DRC is rated third in profit margin category among its peers. It also is rated third in operating margin category among its peers reporting about 1.37 of Operating Margin 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 Resmed's earnings, one of the primary drivers of an investment's value.Resmed Operating Margin 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.
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| = | 0.23 % |
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.
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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| = | 0.32 % |
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.
Resmed Operating Margin Comparison
Resmed is currently under evaluation in operating margin category among its peers.
Resmed Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Resmed. 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 Resmed 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 Resmed's important profitability drivers and their relationship over time.
Use Resmed 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 Resmed 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 Resmed will appreciate offsetting losses from the drop in the long position's value.Resmed Pair Trading
Resmed Inc DRC Pair Trading Analysis
The ability to find closely correlated positions to Resmed could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Resmed 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 Resmed - 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 Resmed Inc DRC to buy it.
The correlation of Resmed 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 Resmed moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Resmed Inc 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 Resmed 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 Resmed position
In addition to having Resmed 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 Asset Allocation ETFs Thematic Idea Now
Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 145 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 Asset Allocation ETFs Theme or any other thematic opportunities.
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Additional Tools for Resmed Stock Analysis
When running Resmed's price analysis, check to measure Resmed'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 Resmed is operating at the current time. Most of Resmed's value examination focuses on studying past and present price action to predict the probability of Resmed's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Resmed's price. Additionally, you may evaluate how the addition of Resmed to your portfolios can decrease your overall portfolio volatility.