Sonic Healthcare Return On Equity vs. Profit Margin
| SKHHY Stock | USD 18.60 0.15 0.81% |
For Sonic Healthcare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sonic Healthcare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sonic Healthcare Ltd utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sonic Healthcare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sonic Healthcare Ltd over time as well as its relative position and ranking within its peers.
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Sonic Healthcare Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sonic Healthcare's current stock value. Our valuation model uses many indicators to compare Sonic Healthcare value to that of its competitors to determine the firm's financial worth. Sonic Healthcare Ltd is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in profit margin category among its peers fabricating about 0.72 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Sonic Healthcare Ltd is roughly 1.39 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sonic Healthcare by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sonic Healthcare's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Sonic Profit Margin vs. Return On Equity
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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| = | 0.22 |
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.
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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| = | 0.16 % |
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.
Sonic Profit Margin Comparison
Sonic Healthcare is currently under evaluation in profit margin category among its peers.
Sonic Healthcare Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sonic Healthcare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sonic Healthcare will eventually generate negative long term returns. The profitability progress is the general direction of Sonic Healthcare's change in net profit over the period of time. It can combine multiple indicators of Sonic Healthcare, 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.
Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia. Sonic Healthcare operates under Diagnostics Research classification in the United States and is traded on OTC Exchange. It employs 41000 people.
Sonic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sonic Healthcare. 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 Sonic Healthcare 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 Sonic Healthcare's important profitability drivers and their relationship over time.
Use Sonic Healthcare 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 Sonic Healthcare 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 Sonic Healthcare will appreciate offsetting losses from the drop in the long position's value.Sonic Healthcare Pair Trading
Sonic Healthcare Ltd Pair Trading Analysis
The ability to find closely correlated positions to Sonic Healthcare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sonic Healthcare 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 Sonic Healthcare - 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 Sonic Healthcare Ltd to buy it.
The correlation of Sonic Healthcare 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 Sonic Healthcare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sonic Healthcare 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 Sonic Healthcare 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 Sonic Healthcare position
In addition to having Sonic Healthcare 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 Medical Equipment Thematic Idea Now
Medical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Medical Equipment theme has 61 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 Medical Equipment Theme or any other thematic opportunities.
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Additional Tools for Sonic Pink Sheet Analysis
When running Sonic Healthcare's price analysis, check to measure Sonic Healthcare'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 Sonic Healthcare is operating at the current time. Most of Sonic Healthcare's value examination focuses on studying past and present price action to predict the probability of Sonic Healthcare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sonic Healthcare's price. Additionally, you may evaluate how the addition of Sonic Healthcare to your portfolios can decrease your overall portfolio volatility.