Johnson Controls Return On Equity vs. Operating Margin
| TYIA Stock | EUR 80.00 0.50 0.63% |
For Johnson Controls profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Johnson Controls to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Johnson Controls International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Johnson Controls's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Johnson Controls International over time as well as its relative position and ranking within its peers.
Johnson |
Johnson Controls Int Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Johnson Controls's current stock value. Our valuation model uses many indicators to compare Johnson Controls value to that of its competitors to determine the firm's financial worth. Johnson Controls International is currently regarded as top stock in return on equity category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 1.13 of Operating Margin 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 Johnson Controls' earnings, one of the primary drivers of an investment's value.Johnson Operating 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.
Johnson Controls |
| = | 0.0817 |
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.
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.
Johnson Controls |
| = | 0.09 % |
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.
Johnson Operating Margin Comparison
Johnson Controls is currently under evaluation in operating margin category among its peers.
Johnson Controls Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Johnson Controls, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Johnson Controls will eventually generate negative long term returns. The profitability progress is the general direction of Johnson Controls' change in net profit over the period of time. It can combine multiple indicators of Johnson Controls, 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.
Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland. JOHNSON CONTR is traded on Frankfurt Stock Exchange in Germany.
Johnson Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Johnson Controls. 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 Johnson Controls 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 Johnson Controls' important profitability drivers and their relationship over time.
Use Johnson Controls 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 Johnson Controls 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 Johnson Controls will appreciate offsetting losses from the drop in the long position's value.Johnson Controls Pair Trading
Johnson Controls International Pair Trading Analysis
The ability to find closely correlated positions to Johnson Controls could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Johnson Controls 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 Johnson Controls - 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 Johnson Controls International to buy it.
The correlation of Johnson Controls 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 Johnson Controls moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Johnson Controls Int 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 Johnson Controls 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 Johnson Controls position
In addition to having Johnson Controls 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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Additional Information and Resources on Investing in Johnson Stock
When determining whether Johnson Controls Int offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Johnson Controls' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Johnson Controls International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Johnson Controls International Stock:Check out World Market Map. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project Johnson Controls' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Johnson Controls Int 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 Johnson Controls' income statement, its balance sheet, and the statement of cash flows.