WESTERN DIGITAL Net Income vs. Z Score
| WDC Stock | EUR 66.69 1.39 2.13% |
For WESTERN DIGITAL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WESTERN DIGITAL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WESTERN DIGITAL utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WESTERN DIGITAL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WESTERN DIGITAL over time as well as its relative position and ranking within its peers.
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WESTERN DIGITAL Z Score vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining WESTERN DIGITAL's current stock value. Our valuation model uses many indicators to compare WESTERN DIGITAL value to that of its competitors to determine the firm's financial worth. WESTERN DIGITAL is rated second in net income category among its peers. It is rated second in z score category among its peers . The ratio of Net Income to Z Score for WESTERN DIGITAL is about 1,250,000,000 . 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 WESTERN DIGITAL's earnings, one of the primary drivers of an investment's value.WESTERN Z Score vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
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| = | 1.5 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
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| = | 1.2 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
WESTERN Z Score Comparison
WESTERN DIGITAL is currently under evaluation in z score category among its peers.
WESTERN Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on WESTERN DIGITAL. 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 WESTERN DIGITAL 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 WESTERN DIGITAL's important profitability drivers and their relationship over time.
Use WESTERN DIGITAL 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 WESTERN DIGITAL 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 WESTERN DIGITAL will appreciate offsetting losses from the drop in the long position's value.WESTERN DIGITAL Pair Trading
WESTERN DIGITAL Pair Trading Analysis
The ability to find closely correlated positions to WESTERN DIGITAL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WESTERN DIGITAL 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 WESTERN DIGITAL - 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 WESTERN DIGITAL to buy it.
The correlation of WESTERN DIGITAL 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 WESTERN DIGITAL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WESTERN DIGITAL 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 WESTERN DIGITAL 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 WESTERN DIGITAL position
In addition to having WESTERN DIGITAL 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 Technology Thematic Idea Now
Technology
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology 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 Technology Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in WESTERN Stock
When determining whether WESTERN DIGITAL offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of WESTERN DIGITAL's 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 Western Digital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Western Digital Stock:Check out Your Current Watchlist. For information on how to trade WESTERN Stock refer to our How to Trade WESTERN Stock guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project WESTERN DIGITAL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of WESTERN DIGITAL 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 WESTERN DIGITAL's income statement, its balance sheet, and the statement of cash flows.