Spotify Technology Gross Profit vs. Profit Margin

SPOT Stock  USD 475.04  4.34  0.92%   
Based on the key profitability measurements obtained from Spotify Technology's financial statements, Spotify Technology SA may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Spotify Technology's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2016-03-31
Previous Quarter
B
Current Value
1.1 B
Quarterly Volatility
283.6 M
 
Yuan Drop
 
Covid
At this time, Spotify Technology's Days Sales Outstanding is comparatively stable compared to the past year. Sales General And Administrative To Revenue is likely to gain to 0.06 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.03 in 2024. Net Interest Income is likely to gain to about 97.7 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop slightly above 984.6 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.2564
Way Down
Slightly volatile
For Spotify Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Spotify Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Spotify Technology SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Spotify Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Spotify Technology SA over time as well as its relative position and ranking within its peers.
  
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Is Movies & Entertainment 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 Spotify Technology. If investors know Spotify 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 Spotify Technology 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
3.394
Earnings Share
3.56
Revenue Per Share
75.928
Quarterly Revenue Growth
0.188
Return On Assets
0.0779
The market value of Spotify Technology is measured differently than its book value, which is the value of Spotify that is recorded on the company's balance sheet. Investors also form their own opinion of Spotify Technology's value that differs from its market value or its book value, called intrinsic value, which is Spotify Technology'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 Spotify Technology's market value can be influenced by many factors that don't directly affect Spotify Technology'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 Spotify Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Spotify Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Spotify Technology'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.

Spotify Technology Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Spotify Technology's current stock value. Our valuation model uses many indicators to compare Spotify Technology value to that of its competitors to determine the firm's financial worth.
Spotify Technology SA is rated below average in gross profit category among its peers. It is rated below average in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for Spotify Technology SA is about  63,060,344,828 . At this time, Spotify Technology's Gross Profit is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Spotify Technology 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.

Spotify Profit Margin 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.

Spotify Technology

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.93 B
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.
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.

Spotify Technology

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
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.

Spotify Profit Margin Comparison

Spotify Technology is currently under evaluation in profit margin category among its peers.

Spotify Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Spotify Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Spotify Technology will eventually generate negative long term returns. The profitability progress is the general direction of Spotify Technology's change in net profit over the period of time. It can combine multiple indicators of Spotify Technology, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.8 B984.6 M
Interest Income131 M74.4 M
Operating Income-446 M-423.7 M
Net Loss-532 M-558.6 M
Income Before Tax-505 M-530.2 M
Total Other Income Expense Net-59 M-62 M
Net Loss-494.5 M-519.2 M
Net Loss-532 M-558.6 M
Income Tax Expense27 M26 M
Net Interest Income93 M97.7 M
Change To Netincome102.6 M97.5 M
Net Loss(2.73)(2.87)
Income Quality(1.28)(1.34)
Net Income Per E B T 1.05  0.96 

Spotify Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Spotify Technology. 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 Spotify Technology 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 Spotify Technology's important profitability drivers and their relationship over time.

Use Spotify Technology 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 Spotify Technology 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 Spotify Technology will appreciate offsetting losses from the drop in the long position's value.

Spotify Technology Pair Trading

Spotify Technology SA Pair Trading Analysis

The ability to find closely correlated positions to Spotify Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Spotify Technology 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 Spotify Technology - 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 Spotify Technology SA to buy it.
The correlation of Spotify Technology 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 Spotify Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Spotify Technology 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 Spotify Technology 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Spotify Technology position

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Additional Tools for Spotify Stock Analysis

When running Spotify Technology's price analysis, check to measure Spotify Technology'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 Spotify Technology is operating at the current time. Most of Spotify Technology's value examination focuses on studying past and present price action to predict the probability of Spotify Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Spotify Technology's price. Additionally, you may evaluate how the addition of Spotify Technology to your portfolios can decrease your overall portfolio volatility.