SK Telecom Gross Profit vs. Return On Equity
| SKM Stock | USD 22.78 0.12 0.53% |
Gross Profit | First Reported 1998-03-31 | Previous Quarter 1 T | Current Value 4.5 T | Quarterly Volatility 1.2 T |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.2 | 0.2121 |
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| Net Profit Margin | 0.12 | 0.0611 |
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| Operating Profit Margin | 0.18 | 0.0993 |
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| Pretax Profit Margin | 0.17 | 0.0839 |
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| Return On Assets | 0.0339 | 0.0357 |
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| Return On Equity | 0.15 | 0.0979 |
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For SK Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SK Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SK Telecom Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SK Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SK Telecom Co over time as well as its relative position and ranking within its peers.
SKM |
Is Wireless Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SK Telecom. If investors know SKM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SK Telecom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.08) | Dividend Share 3.5 K | Earnings Share 1.96 | Revenue Per Share 46.3 K | Quarterly Revenue Growth 0.029 |
The market value of SK Telecom is measured differently than its book value, which is the value of SKM that is recorded on the company's balance sheet. Investors also form their own opinion of SK Telecom's value that differs from its market value or its book value, called intrinsic value, which is SK Telecom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SK Telecom's market value can be influenced by many factors that don't directly affect SK Telecom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SK Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if SK Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SK Telecom'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.
SK Telecom Return On Equity vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining SK Telecom's current stock value. Our valuation model uses many indicators to compare SK Telecom value to that of its competitors to determine the firm's financial worth. SK Telecom Co is currently regarded as top stock in gross profit category among its peers. It is rated fifth in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for SK Telecom Co is about Huge . At this time, SK Telecom's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value SK Telecom by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.SKM Return On Equity vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
SK Telecom |
| = | 12.44 T |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
SK Telecom |
| = | 0.0946 |
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.
SKM Return On Equity Comparison
SK Telecom is currently under evaluation in return on equity category among its peers.
SK Telecom Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in SK Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SK Telecom will eventually generate negative long term returns. The profitability progress is the general direction of SK Telecom's change in net profit over the period of time. It can combine multiple indicators of SK Telecom, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 1.1 T | 1.2 T | |
| Operating Income | 1.8 T | 2 T | |
| Income Before Tax | 1.5 T | 2.1 T | |
| Total Other Income Expense Net | -268.1 B | -254.7 B | |
| Net Income | 1.1 T | 1.6 T | |
| Income Tax Expense | 342.2 B | 509.8 B | |
| Net Income Applicable To Common Shares | 1 T | 696.3 B | |
| Net Income From Continuing Ops | 1.2 T | 1.5 T | |
| Interest Income | 71.4 B | 67.8 B | |
| Net Interest Income | -318 B | -333.9 B | |
| Change To Netincome | 336.1 B | 353 B | |
| Net Income Per Share | 5 K | 5.1 K | |
| Income Quality | 4.30 | 2.26 | |
| Net Income Per E B T | 0.73 | 0.60 |
SKM Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on SK Telecom. 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 SK Telecom 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 SK Telecom's important profitability drivers and their relationship over time.
Use SK Telecom 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 SK Telecom 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 SK Telecom will appreciate offsetting losses from the drop in the long position's value.SK Telecom Pair Trading
SK Telecom Co Pair Trading Analysis
The ability to find closely correlated positions to SK Telecom could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SK Telecom 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 SK Telecom - 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 SK Telecom Co to buy it.
The correlation of SK Telecom 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 SK Telecom moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SK Telecom 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 SK Telecom 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 SK Telecom position
In addition to having SK Telecom 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?
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Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 43 constituents at this time.
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Check out World Market Map. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project SK Telecom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SK Telecom 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 SK Telecom's income statement, its balance sheet, and the statement of cash flows.