Varian Medical Profit Margin vs. Operating Margin
Taking into consideration Varian Medical's profitability measurements, Varian Medical Systems may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Varian Medical's ability to earn profits and add value for shareholders.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Please note, there is a significant difference between Varian Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Varian Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Varian Medical'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.
For Varian Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Varian Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Varian Medical Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Varian Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Varian Medical Systems over time as well as its relative position and ranking within its peers.
Varian |
Varian Medical Systems Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Varian Medical's current stock value. Our valuation model uses many indicators to compare Varian Medical value to that of its competitors to determine the firm's financial worth. Varian Medical Systems is rated first in profit margin category among its peers. It is rated first in operating margin category among its peers reporting about 1.89 of Operating Margin per Profit Margin. Comparative valuation analysis is a catch-all technique that is used if you cannot value Varian Medical 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.Varian Operating Margin vs. Profit Margin
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.
Varian Medical |
| = | 8.90 % |
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.
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.
Varian Medical |
| = | 16.82 % |
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.
Varian Operating Margin Comparison
Varian Medical is currently under evaluation in operating margin category among its peers.
Varian Medical Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Varian Medical, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Varian Medical will eventually generate negative long term returns. The profitability progress is the general direction of Varian Medical's change in net profit over the period of time. It can combine multiple indicators of Varian Medical, 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.
Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. The company was founded in 1948 and is headquartered in Palo Alto, California. Varian Medical operates under Medical Instruments Supplies classification in the United States and is traded on New York Stock Exchange. It employs 10000 people.
Varian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Varian Medical. 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 Varian Medical 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 Varian Medical's important profitability drivers and their relationship over time.
Use Varian Medical 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 Varian Medical 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 Varian Medical will appreciate offsetting losses from the drop in the long position's value.Varian Medical Pair Trading
Varian Medical Systems Pair Trading Analysis
The ability to find closely correlated positions to Caterpillar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Caterpillar 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 Caterpillar - 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 Caterpillar to buy it.
The correlation of Caterpillar 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 Caterpillar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Caterpillar 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 Caterpillar 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 Varian Medical position
In addition to having Varian Medical 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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Agriculture
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Agriculture theme has 30 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 Agriculture Theme or any other thematic opportunities.
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Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Consideration for investing in Varian Stock
If you are still planning to invest in Varian Medical Systems check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Varian Medical's history and understand the potential risks before investing.
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