AB Volvo Revenue vs. Return On Equity
| VOLV-A Stock | SEK 273.00 0.20 0.07% |
For AB Volvo profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AB Volvo to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AB Volvo utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AB Volvo's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AB Volvo over time as well as its relative position and ranking within its peers.
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AB Volvo Return On Equity vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AB Volvo's current stock value. Our valuation model uses many indicators to compare AB Volvo value to that of its competitors to determine the firm's financial worth. AB Volvo is rated first in revenue category among its peers. It is rated first in return on equity category among its peers . The ratio of Revenue to Return On Equity for AB Volvo is about 2,228,136,470,588 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AB Volvo by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AB Volvo's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.VOLV-A Revenue vs. Competition
AB Volvo is rated first in revenue category among its peers. Market size based on revenue of Farm & Heavy Construction Machinery industry is at this time estimated at about 1.11 Trillion. AB Volvo totals roughly 473.48 Billion in revenue claiming about 43% of equities under Farm & Heavy Construction Machinery industry.
VOLV-A Return On Equity vs. Revenue
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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| = | 473.48 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.
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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| = | 0.21 |
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.
VOLV-A Return On Equity Comparison
AB Volvo is currently under evaluation in return on equity category among its peers.
AB Volvo Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AB Volvo, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AB Volvo will eventually generate negative long term returns. The profitability progress is the general direction of AB Volvo's change in net profit over the period of time. It can combine multiple indicators of AB Volvo, 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.
AB Volvo , together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, Africa, and Oceania. AB Volvo was incorporated in 1915 and is headquartered in Gothenburg, Sweden. Volvo AB is traded on Stockholm Stock Exchange in Sweden.
VOLV-A Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AB Volvo. 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 AB Volvo 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 AB Volvo's important profitability drivers and their relationship over time.
Use AB Volvo 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 AB Volvo 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 AB Volvo will appreciate offsetting losses from the drop in the long position's value.AB Volvo Pair Trading
AB Volvo Pair Trading Analysis
The ability to find closely correlated positions to AB Volvo could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AB Volvo 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 AB Volvo - 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 AB Volvo to buy it.
The correlation of AB Volvo 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 AB Volvo moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AB Volvo 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 AB Volvo 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 AB Volvo position
In addition to having AB Volvo 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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Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 42 constituents at this time.
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Other Information on Investing in VOLV-A Stock
To fully project AB Volvo's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AB Volvo 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 AB Volvo's income statement, its balance sheet, and the statement of cash flows.