Sociedad Qumica Operating Margin vs. Return On Asset
| SQM-B Stock | CLP 37,200 50.00 0.13% |
For Sociedad Qumica profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sociedad Qumica to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sociedad Qumica y utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sociedad Qumica's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sociedad Qumica y over time as well as its relative position and ranking within its peers.
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Sociedad Qumica y Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sociedad Qumica's current stock value. Our valuation model uses many indicators to compare Sociedad Qumica value to that of its competitors to determine the firm's financial worth. Sociedad Qumica y is rated fourth in operating margin category among its peers. It also is rated fourth in return on asset category among its peers reporting about 0.63 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Sociedad Qumica y is roughly 1.58 . 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 Sociedad Qumica's earnings, one of the primary drivers of an investment's value.Sociedad Return On Asset 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.
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| = | 0.52 % |
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.
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.
Sociedad Qumica |
| = | 0.33 |
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.
Sociedad Return On Asset Comparison
Sociedad Qumica is rated second in return on asset category among its peers.
Sociedad Qumica Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sociedad Qumica, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sociedad Qumica will eventually generate negative long term returns. The profitability progress is the general direction of Sociedad Qumica's change in net profit over the period of time. It can combine multiple indicators of Sociedad Qumica, 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.
Sociedad Qumica y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services worldwide. The company was founded in 1968 and is headquartered in Santiago, Chile. QUIMICA Y is traded on Commodity Exchange in Exotistan.
Sociedad Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sociedad Qumica. 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 Sociedad Qumica 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 Sociedad Qumica's important profitability drivers and their relationship over time.
Use Sociedad Qumica 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 Sociedad Qumica 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 Sociedad Qumica will appreciate offsetting losses from the drop in the long position's value.Sociedad Qumica Pair Trading
Sociedad Qumica y Pair Trading Analysis
The ability to find closely correlated positions to Sociedad Qumica could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sociedad Qumica 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 Sociedad Qumica - 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 Sociedad Qumica y to buy it.
The correlation of Sociedad Qumica 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 Sociedad Qumica moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sociedad Qumica y 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 Sociedad Qumica 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 Sociedad Qumica position
In addition to having Sociedad Qumica 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 Momentum Thematic Idea Now
Momentum
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 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 Momentum Theme or any other thematic opportunities.
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Additional Tools for Sociedad Stock Analysis
When running Sociedad Qumica's price analysis, check to measure Sociedad Qumica'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 Sociedad Qumica is operating at the current time. Most of Sociedad Qumica's value examination focuses on studying past and present price action to predict the probability of Sociedad Qumica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sociedad Qumica's price. Additionally, you may evaluate how the addition of Sociedad Qumica to your portfolios can decrease your overall portfolio volatility.