SPS Commerce Cash Flow From Operations vs. Return On Asset
| S86 Stock | 187.00 2.00 1.08% |
For SPS Commerce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SPS Commerce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SPS Commerce utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SPS Commerce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SPS Commerce over time as well as its relative position and ranking within its peers.
SPS |
SPS Commerce Return On Asset vs. Cash Flow From Operations Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SPS Commerce's current stock value. Our valuation model uses many indicators to compare SPS Commerce value to that of its competitors to determine the firm's financial worth. SPS Commerce is rated below average in cash flow from operations category among its peers. It is currently regarded as top stock in return on asset category among its peers . The ratio of Cash Flow From Operations to Return On Asset for SPS Commerce is about 1,643,275,109 . 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 SPS Commerce's earnings, one of the primary drivers of an investment's value.SPS Return On Asset vs. Cash Flow From Operations
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
SPS Commerce |
| = | 112.89 M |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
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.
SPS Commerce |
| = | 0.0687 |
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.
SPS Return On Asset Comparison
SPS Commerce is currently under evaluation in return on asset category among its peers.
SPS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SPS Commerce. 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 SPS Commerce 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 SPS Commerce's important profitability drivers and their relationship over time.
Use SPS Commerce 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 SPS Commerce 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 SPS Commerce will appreciate offsetting losses from the drop in the long position's value.SPS Commerce Pair Trading
SPS Commerce Pair Trading Analysis
The ability to find closely correlated positions to SPS Commerce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SPS Commerce 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 SPS Commerce - 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 SPS Commerce to buy it.
The correlation of SPS Commerce 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 SPS Commerce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SPS Commerce 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 SPS Commerce 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 SPS Commerce position
In addition to having SPS Commerce 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 Healthcare Thematic Idea Now
Healthcare
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 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 Healthcare Theme or any other thematic opportunities.
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Additional Tools for SPS Stock Analysis
When running SPS Commerce's price analysis, check to measure SPS Commerce'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 SPS Commerce is operating at the current time. Most of SPS Commerce's value examination focuses on studying past and present price action to predict the probability of SPS Commerce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SPS Commerce's price. Additionally, you may evaluate how the addition of SPS Commerce to your portfolios can decrease your overall portfolio volatility.