Woolworths Group Return On Equity vs. Revenue
| WWR Stock | EUR 18.40 0.10 0.54% |
For Woolworths Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Woolworths Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Woolworths Group Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Woolworths Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Woolworths Group Limited over time as well as its relative position and ranking within its peers.
Woolworths |
Woolworths Group Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Woolworths Group's current stock value. Our valuation model uses many indicators to compare Woolworths Group value to that of its competitors to determine the firm's financial worth. Woolworths Group Limited is rated first in return on equity category among its peers. It is rated first in revenue category among its peers totaling about 212,535,801,607 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 Woolworths Group's earnings, one of the primary drivers of an investment's value.Woolworths 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.
Woolworths Group |
| = | 0.29 |
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.
Woolworths Group |
| = | 60.85 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.
Woolworths Revenue vs Competition
Woolworths Group Limited is rated first in revenue category among its peers. Market size based on revenue of Grocery Stores industry is at this time estimated at about 72.67 Billion. Woolworths Group totals roughly 60.85 Billion in revenue claiming about 84% of equities under Grocery Stores industry.
Woolworths Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Woolworths Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Woolworths Group will eventually generate negative long term returns. The profitability progress is the general direction of Woolworths Group's change in net profit over the period of time. It can combine multiple indicators of Woolworths Group, 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.
It operates through Australian Food, New Zealand Food, Endeavour Drinks, BIG W, Hotels, and Other segments. Woolworths Group Limited was founded in 1924 and is based in Bella Vista, Australia. WOOLWORTHS GROUP operates under Grocery Stores classification in Germany and is traded on Frankfurt Stock Exchange. It employs 201522 people.
Woolworths Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Woolworths Group. 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 Woolworths Group 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 Woolworths Group's important profitability drivers and their relationship over time.
Use Woolworths Group 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 Woolworths Group 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 Woolworths Group will appreciate offsetting losses from the drop in the long position's value.Woolworths Group Pair Trading
Woolworths Group Limited Pair Trading Analysis
The ability to find closely correlated positions to Woolworths Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Woolworths Group 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 Woolworths Group - 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 Woolworths Group Limited to buy it.
The correlation of Woolworths Group 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 Woolworths Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Woolworths Group 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 Woolworths Group 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 Woolworths Group position
In addition to having Woolworths Group 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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Other Information on Investing in Woolworths Stock
To fully project Woolworths Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Woolworths Group 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 Woolworths Group's income statement, its balance sheet, and the statement of cash flows.