Zoom Video Operating Margin vs. Shares Outstanding

ZM Stock  USD 85.88  4.68  5.76%   
Considering Zoom Video's profitability and operating efficiency indicators, Zoom Video's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Zoom Video's ability to earn profits and add value for shareholders.

Zoom Video Operating Profit Margin

0.0636

At this time, Zoom Video's Days Sales Outstanding is very stable compared to the past year. As of the 25th of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.14, while EV To Sales is likely to drop 3.77. At this time, Zoom Video's Net Income Per Share is very stable compared to the past year. As of the 25th of November 2024, Income Quality is likely to grow to 2.63, while Operating Income is likely to drop about 344.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.850.7619
Moderately Up
Pretty Stable
For Zoom Video profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zoom Video to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zoom Video Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zoom Video's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zoom Video Communications over time as well as its relative position and ranking within its peers.
  
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zoom Video. If investors know Zoom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zoom Video listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.173
Earnings Share
2.8
Revenue Per Share
14.962
Quarterly Revenue Growth
0.021
Return On Assets
0.0478
The market value of Zoom Video Communications is measured differently than its book value, which is the value of Zoom that is recorded on the company's balance sheet. Investors also form their own opinion of Zoom Video's value that differs from its market value or its book value, called intrinsic value, which is Zoom Video's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zoom Video's market value can be influenced by many factors that don't directly affect Zoom Video's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zoom Video's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zoom Video is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zoom Video'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.

Zoom Video Communications Shares Outstanding vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Zoom Video's current stock value. Our valuation model uses many indicators to compare Zoom Video value to that of its competitors to determine the firm's financial worth.
Zoom Video Communications is rated first in operating margin category among its peers. It is rated first in shares outstanding category among its peers creating about  1,505,623,159  of Shares Outstanding per Operating Margin. At this time, Zoom Video's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Zoom Video 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.

Zoom Shares Outstanding vs. Operating Margin

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.

Zoom Video

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.17 %
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.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Zoom Video

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
262.13 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

Zoom Shares Outstanding Comparison

Zoom Video is currently under evaluation in shares outstanding category among its peers.

Zoom Video Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Zoom Video, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zoom Video will eventually generate negative long term returns. The profitability progress is the general direction of Zoom Video's change in net profit over the period of time. It can combine multiple indicators of Zoom Video, 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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.1 M1.1 M
Net Interest Income9.1 M7.9 M
Interest Income43.2 M45.4 M
Operating Income525.3 M344.9 M
Net Income From Continuing Ops637.5 M387.5 M
Income Before Tax832.3 M873.9 M
Total Other Income Expense Net307 M322.4 M
Net Income Applicable To Common Shares119.3 M113.3 M
Net Income637.5 M387.5 M
Income Tax Expense194.8 M204.6 M
Non Operating Income Net Other-33.8 M-32.1 M
Change To Netincome1.6 B1.6 B
Net Income Per Share 2.12  2.23 
Income Quality 2.51  2.63 
Net Income Per E B T 0.77  0.63 

Zoom Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Zoom Video. 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 Zoom Video 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 Zoom Video's important profitability drivers and their relationship over time.

Use Zoom Video 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 Zoom Video 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 Zoom Video will appreciate offsetting losses from the drop in the long position's value.

Zoom Video Pair Trading

Zoom Video Communications Pair Trading Analysis

The ability to find closely correlated positions to Zoom Video could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zoom Video 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 Zoom Video - 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 Zoom Video Communications to buy it.
The correlation of Zoom Video 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 Zoom Video moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zoom Video Communications 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 Zoom Video 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Zoom Video position

In addition to having Zoom Video 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.

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Run Investor Favorites Thematic Idea Now

Investor Favorites
Investor Favorites Theme
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 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 Investor Favorites Theme or any other thematic opportunities.
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You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
To fully project Zoom Video's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zoom Video Communications 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 Zoom Video's income statement, its balance sheet, and the statement of cash flows.
Potential Zoom Video investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Zoom Video investors may work on each financial statement separately, they are all related. The changes in Zoom Video's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Zoom Video's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.