Stanley Black Return On Equity vs. Return On Asset
| SWF Stock | EUR 84.14 0.03 0.04% |
For Stanley Black profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stanley Black to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stanley Black Decker utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stanley Black's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stanley Black Decker over time as well as its relative position and ranking within its peers.
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Stanley Black Decker Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Stanley Black's current stock value. Our valuation model uses many indicators to compare Stanley Black value to that of its competitors to determine the firm's financial worth. Stanley Black Decker is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in return on asset category among its peers reporting about 1.39 of Return On Asset per Return On Equity. 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 Stanley Black's earnings, one of the primary drivers of an investment's value.Stanley Return On Asset 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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| = | 0.016 |
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.
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.
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| = | 0.0222 |
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.
Stanley Return On Asset Comparison
Stanley Black is currently under evaluation in return on asset category among its peers.
Stanley Black Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Stanley Black, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stanley Black will eventually generate negative long term returns. The profitability progress is the general direction of Stanley Black's change in net profit over the period of time. It can combine multiple indicators of Stanley Black, 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.
Stanley Black Decker, Inc. engages in tools and storage, industrial, and security businesses worldwide. Stanley Black Decker, Inc. was founded in 1843 and is headquartered in New Britain, Connecticut. STANLEY BL operates under Tools Accessories classification in Germany and is traded on Frankfurt Stock Exchange. It employs 60767 people.
Stanley Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Stanley Black. 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 Stanley Black 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 Stanley Black's important profitability drivers and their relationship over time.
Use Stanley Black 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 Stanley Black 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 Stanley Black will appreciate offsetting losses from the drop in the long position's value.Stanley Black Pair Trading
Stanley Black Decker Pair Trading Analysis
The ability to find closely correlated positions to Stanley Black could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stanley Black 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 Stanley Black - 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 Stanley Black Decker to buy it.
The correlation of Stanley Black 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 Stanley Black moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stanley Black Decker 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 Stanley Black 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 Stanley Black position
In addition to having Stanley Black 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 Cigarettes Thematic Idea Now
Cigarettes
Tobacco makers and distributors across globe. The Cigarettes theme has 43 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 Cigarettes Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Stanley Stock
When determining whether Stanley Black Decker is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Stanley Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Stanley Black Decker Stock. Highlighted below are key reports to facilitate an investment decision about Stanley Black Decker Stock:Check out World Market Map. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
To fully project Stanley Black's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stanley Black Decker 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 Stanley Black's income statement, its balance sheet, and the statement of cash flows.