Shopify Income Quality vs Capex To Revenue Analysis

SHOP Stock

USD 115.60 3.06 2.72%

Shopify financial indicator trend analysis is much more than just breaking down Shopify prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Shopify is a good investment. Please check the relationship between Shopify Income Quality and its Capex To Revenue accounts. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.

Income Quality vs Capex To Revenue

Income Quality vs Capex To Revenue Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Shopify Income Quality account and Capex To Revenue. At this time, the significance of the direction appears to have significant contrarian relationship.

The correlation between Shopify's Income Quality and Capex To Revenue is -0.46. Overlapping area represents the amount of variation of Income Quality that can explain the historical movement of Capex To Revenue in the same time period over historical financial statements of Shopify, assuming nothing else is changed. The correlation between historical values of Shopify's Income Quality and Capex To Revenue is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Quality of Shopify are associated (or correlated) with its Capex To Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Capex To Revenue has no effect on the direction of Income Quality i.e., Shopify's Income Quality and Capex To Revenue go up and down completely randomly.

Correlation Coefficient

-0.46

Relationship Direction	Negative
Relationship Strength	Very Weak

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Income Quality

An assessment of the sustainability of a company's earnings over time, considering factors like revenue source diversification and cost structure.

Capex To Revenue

The ratio of a company's capital expenditures to its total revenue, indicating how much of the revenue is used for acquiring or maintaining physical assets.

Most indicators from Shopify's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Shopify current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.At this time, Shopify's Selling General Administrative is relatively stable compared to the past year. As of 12/02/2024, Tax Provision is likely to grow to about 55.6 M, though Enterprise Value Multiple is likely to grow to (11.8 K).

	2021	2022	2023	2024 (projected)
Gross Profit	2.5B	2.8B	3.5B	3.7B
Total Revenue	4.6B	5.6B	7.1B	7.4B

Gross Profit Total Revenue

Shopify fundamental ratios Correlations

	Common Stock Shares Outstanding	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Other Liab	Net Tangible Assets	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Total Equity	Short Term Investments	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross
Common Stock Shares Outstanding		0.67	0.65	0.69	0.66	0.67	0.57	0.67	0.6	0.62	-0.45	0.15	0.64	0.63	0.6	0.68	0.62	0.47	0.69	0.69	0.64	0.44	0.64	0.56	0.65	0.66
Total Assets	0.67		0.98	0.92	0.97	1.0	0.93	0.98	0.79	0.95	-0.55	0.33	0.95	0.85	0.95	0.91	0.94	0.63	0.97	0.92	0.98	0.71	0.95	0.8	0.98	0.86
Short Long Term Debt Total	0.65	0.98		0.92	0.97	0.97	0.91	0.93	0.81	0.96	-0.51	0.22	0.93	0.85	0.94	0.88	0.94	0.73	0.95	0.87	1.0	0.76	0.95	0.75	0.99	0.88
Other Current Liab	0.69	0.92	0.92		0.87	0.92	0.78	0.93	0.91	0.83	-0.68	0.36	0.83	0.94	0.82	0.97	0.79	0.74	0.91	0.97	0.92	0.52	0.84	0.66	0.91	0.94
Total Current Liabilities	0.66	0.97	0.97	0.87		0.96	0.94	0.91	0.78	0.99	-0.39	0.12	0.99	0.74	0.97	0.81	0.99	0.69	0.97	0.83	0.97	0.84	0.99	0.77	0.99	0.87
Total Stockholder Equity	0.67	1.0	0.97	0.92	0.96		0.93	0.99	0.78	0.94	-0.57	0.36	0.94	0.86	0.94	0.92	0.93	0.6	0.97	0.93	0.97	0.68	0.94	0.81	0.98	0.85
Other Liab	0.57	0.93	0.91	0.78	0.94	0.93		0.89	0.66	0.96	-0.25	0.32	0.93	0.63	0.99	0.73	0.94	0.59	0.85	0.77	0.93	0.8	0.91	0.65	0.94	0.76
Net Tangible Assets	0.67	0.98	0.93	0.93	0.91	0.99	0.89		0.76	0.88	-0.66	0.47	0.88	0.9	0.9	0.95	0.87	0.54	0.94	0.96	0.94	0.57	0.88	0.81	0.94	0.82
Property Plant And Equipment Net	0.6	0.79	0.81	0.91	0.78	0.78	0.66	0.76		0.74	-0.49	0.2	0.75	0.76	0.72	0.81	0.67	0.89	0.78	0.81	0.82	0.49	0.75	0.4	0.81	0.96
Current Deferred Revenue	0.62	0.95	0.96	0.83	0.99	0.94	0.96	0.88	0.74		-0.3	0.1	0.98	0.69	0.98	0.76	0.99	0.7	0.93	0.78	0.96	0.89	0.98	0.73	0.98	0.84
Net Debt	-0.45	-0.55	-0.51	-0.68	-0.39	-0.57	-0.25	-0.66	-0.49	-0.3		-0.52	-0.33	-0.88	-0.28	-0.81	-0.3	-0.16	-0.59	-0.75	-0.49	0.1	-0.38	-0.63	-0.45	-0.45
Retained Earnings	0.15	0.33	0.22	0.36	0.12	0.36	0.32	0.47	0.2	0.1	-0.52		0.07	0.45	0.25	0.47	0.05	-0.1	0.16	0.47	0.27	-0.31	0.06	0.13	0.22	0.14
Accounts Payable	0.64	0.95	0.93	0.83	0.99	0.94	0.93	0.88	0.75	0.98	-0.33	0.07		0.69	0.96	0.77	0.99	0.66	0.95	0.79	0.93	0.86	0.99	0.77	0.96	0.85
Cash	0.63	0.85	0.85	0.94	0.74	0.86	0.63	0.9	0.76	0.69	-0.88	0.45	0.69		0.67	0.98	0.67	0.53	0.85	0.95	0.83	0.33	0.73	0.75	0.81	0.78
Non Current Assets Total	0.6	0.95	0.94	0.82	0.97	0.94	0.99	0.9	0.72	0.98	-0.28	0.25	0.96	0.67		0.76	0.96	0.65	0.89	0.79	0.96	0.83	0.95	0.68	0.97	0.81
Cash And Short Term Investments	0.68	0.91	0.88	0.97	0.81	0.92	0.73	0.95	0.81	0.76	-0.81	0.47	0.77	0.98	0.76		0.74	0.57	0.9	0.99	0.87	0.4	0.79	0.75	0.86	0.84
Net Receivables	0.62	0.94	0.94	0.79	0.99	0.93	0.94	0.87	0.67	0.99	-0.3	0.05	0.99	0.67	0.96	0.74		0.62	0.94	0.76	0.93	0.9	0.98	0.79	0.96	0.79
Good Will	0.47	0.63	0.73	0.74	0.69	0.6	0.59	0.54	0.89	0.7	-0.16	-0.1	0.66	0.53	0.65	0.57	0.62		0.61	0.58	0.73	0.62	0.66	0.18	0.72	0.87
Common Stock Total Equity	0.69	0.97	0.95	0.91	0.97	0.97	0.85	0.94	0.78	0.93	-0.59	0.16	0.95	0.85	0.89	0.9	0.94	0.61		0.9	0.94	0.72	0.96	0.87	0.95	0.85
Short Term Investments	0.69	0.92	0.87	0.97	0.83	0.93	0.77	0.96	0.81	0.78	-0.75	0.47	0.79	0.95	0.79	0.99	0.76	0.58	0.9		0.88	0.44	0.8	0.74	0.87	0.86
Non Current Liabilities Total	0.64	0.98	1.0	0.92	0.97	0.97	0.93	0.94	0.82	0.96	-0.49	0.27	0.93	0.83	0.96	0.87	0.93	0.73	0.94	0.88		0.75	0.94	0.72	1.0	0.88
Inventory	0.44	0.71	0.76	0.52	0.84	0.68	0.8	0.57	0.49	0.89	0.1	-0.31	0.86	0.33	0.83	0.4	0.9	0.62	0.72	0.44	0.75		0.85	0.56	0.79	0.63
Other Current Assets	0.64	0.95	0.95	0.84	0.99	0.94	0.91	0.88	0.75	0.98	-0.38	0.06	0.99	0.73	0.95	0.79	0.98	0.66	0.96	0.8	0.94	0.85		0.8	0.97	0.85
Other Stockholder Equity	0.56	0.8	0.75	0.66	0.77	0.81	0.65	0.81	0.4	0.73	-0.63	0.13	0.77	0.75	0.68	0.75	0.79	0.18	0.87	0.74	0.72	0.56	0.8		0.75	0.51
Total Liab	0.65	0.98	0.99	0.91	0.99	0.98	0.94	0.94	0.81	0.98	-0.45	0.22	0.96	0.81	0.97	0.86	0.96	0.72	0.95	0.87	1.0	0.79	0.97	0.75		0.88
Property Plant And Equipment Gross	0.66	0.86	0.88	0.94	0.87	0.85	0.76	0.82	0.96	0.84	-0.45	0.14	0.85	0.78	0.81	0.84	0.79	0.87	0.85	0.86	0.88	0.63	0.85	0.51	0.88

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Shopify Account Relationship Matchups

Pair Trading with Shopify

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 Shopify 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 Shopify will appreciate offsetting losses from the drop in the long position's value.

Moving together with Shopify Stock

0.82	DJCO	Daily Journal Corp	Pair Corr
0.84	AI	C3 Ai Inc Earnings Call This Week	Pair Corr
0.83	BL	Blackline	Pair Corr

Moving against Shopify Stock

0.66	VERB	VERB TECHNOLOGY PANY Tech Boost	Pair Corr
0.58	VTEX	VTEX	Pair Corr

The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify 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 Shopify - 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 Shopify to buy it.

The correlation of Shopify 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 Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify 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 Shopify 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 Correlation Correlation Matching

Additional Tools for Shopify Stock Analysis

When running Shopify's price analysis, check to measure Shopify's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Shopify is operating at the current time. Most of Shopify's value examination focuses on studying past and present price action to predict the probability of Shopify's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Shopify's price. Additionally, you may evaluate how the addition of Shopify to your portfolios can decrease your overall portfolio volatility.

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