SIEMENS AG Operating Margin vs. Current Ratio
| SIEB Stock | EUR 89.50 1.00 1.13% |
For SIEMENS AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SIEMENS AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SIEMENS AG SP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SIEMENS AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SIEMENS AG SP over time as well as its relative position and ranking within its peers.
SIEMENS |
SIEMENS AG SP Current Ratio vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SIEMENS AG's current stock value. Our valuation model uses many indicators to compare SIEMENS AG value to that of its competitors to determine the firm's financial worth. SIEMENS AG SP is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in current ratio category among its peers fabricating about 12.65 of Current Ratio per Operating 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 SIEMENS AG's earnings, one of the primary drivers of an investment's value.SIEMENS Current Ratio vs. Operating Margin
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.
SIEMENS AG |
| = | 0.10 % |
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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
SIEMENS AG |
| = | 1.29 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
SIEMENS Current Ratio Comparison
SIEMENS AG is currently under evaluation in current ratio category among its peers.
SIEMENS AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SIEMENS AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SIEMENS AG will eventually generate negative long term returns. The profitability progress is the general direction of SIEMENS AG's change in net profit over the period of time. It can combine multiple indicators of SIEMENS AG, 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.
Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. The company was founded in 1847 and is headquartered in Munich, Germany. SIEMENS AG operates under Specialty Industrial Machinery classification in Germany and is traded on Frankfurt Stock Exchange. It employs 299000 people.
SIEMENS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SIEMENS AG. 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 SIEMENS AG 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 SIEMENS AG's important profitability drivers and their relationship over time.
Use SIEMENS AG 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 SIEMENS AG 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 SIEMENS AG will appreciate offsetting losses from the drop in the long position's value.SIEMENS AG Pair Trading
SIEMENS AG SP Pair Trading Analysis
The ability to find closely correlated positions to SIEMENS AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SIEMENS AG 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 SIEMENS AG - 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 SIEMENS AG SP to buy it.
The correlation of SIEMENS AG 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 SIEMENS AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SIEMENS AG SP 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 SIEMENS AG 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 SIEMENS AG position
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Other Information on Investing in SIEMENS Stock
To fully project SIEMENS AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SIEMENS AG SP 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 SIEMENS AG's income statement, its balance sheet, and the statement of cash flows.