Avnet Return On Equity vs. Revenue
| VNI Stock | EUR 51.00 0.50 0.97% |
For Avnet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Avnet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Avnet Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Avnet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Avnet Inc over time as well as its relative position and ranking within its peers.
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Avnet Inc Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Avnet's current stock value. Our valuation model uses many indicators to compare Avnet value to that of its competitors to determine the firm's financial worth. Avnet Inc is rated first in return on equity category among its peers. It is rated first in revenue category among its peers totaling about 122,225,781,800 of Revenue 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 Avnet's earnings, one of the primary drivers of an investment's value.Avnet Revenue 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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| = | 0.2 |
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
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| = | 24.31 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Avnet Revenue vs Competition
Avnet Inc is rated first in revenue category among its peers. Market size based on revenue of Electronics Distribution industry is at this time estimated at about 322.27 Billion. Avnet holds roughly 24.31 Billion in revenue claiming about 8% of equities under Electronics Distribution industry.
Avnet Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Avnet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Avnet will eventually generate negative long term returns. The profitability progress is the general direction of Avnet's change in net profit over the period of time. It can combine multiple indicators of Avnet, 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.
Avnet, Inc., a technology solutions company, distributes electronic components worldwide. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona. AVNET INC operates under Electronics Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 15400 people.
Avnet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Avnet. 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 Avnet 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 Avnet's important profitability drivers and their relationship over time.
Use Avnet 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 Avnet 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 Avnet will appreciate offsetting losses from the drop in the long position's value.Avnet Pair Trading
Avnet Inc Pair Trading Analysis
The ability to find closely correlated positions to Avnet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Avnet 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 Avnet - 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 Avnet Inc to buy it.
The correlation of Avnet 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 Avnet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Avnet Inc 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 Avnet 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 Avnet position
In addition to having Avnet 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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Natural Foods
Companies producing natural foods including dairy products and different types of meets. The Natural Foods theme has 37 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 Natural Foods Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Avnet Stock
When determining whether Avnet Inc 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 Avnet 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 Avnet Inc Stock. Highlighted below are key reports to facilitate an investment decision about Avnet Inc Stock:Check out World Market Map. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project Avnet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Avnet Inc 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 Avnet's income statement, its balance sheet, and the statement of cash flows.