Nutanix Gross Profit vs. Price To Sales

0NU Stock  EUR 59.92  0.40  0.67%   
Based on the key profitability measurements obtained from Nutanix's financial statements, Nutanix may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Nutanix's ability to earn profits and add value for shareholders.
For Nutanix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nutanix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nutanix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nutanix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nutanix over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Nutanix Stock please use our How to Invest in Nutanix guide.
Please note, there is a significant difference between Nutanix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nutanix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nutanix'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.

Nutanix Price To Sales vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Nutanix's current stock value. Our valuation model uses many indicators to compare Nutanix value to that of its competitors to determine the firm's financial worth.
Nutanix is rated third in gross profit category among its peers. It is rated fourth in price to sales category among its peers . The ratio of Gross Profit to Price To Sales for Nutanix is about  286,298,830 . 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 Nutanix's earnings, one of the primary drivers of an investment's value.

Nutanix Price To Sales vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Nutanix

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.26 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Nutanix

P/S

 = 

MV Per Share

Revenue Per Share

 = 
4.40 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Nutanix Price To Sales Comparison

Nutanix is rated third in price to sales category among its peers.

Nutanix Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Nutanix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nutanix will eventually generate negative long term returns. The profitability progress is the general direction of Nutanix's change in net profit over the period of time. It can combine multiple indicators of Nutanix, 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.
Nutanix, Inc., together with its subsidiaries, develops and provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. The company was founded in 2009 and is headquartered in San Jose, California. NUTANIX INC operates under Software - Infrastructure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4930 people.

Nutanix Profitability Driver Comparison

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

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

Nutanix Pair Trading

Nutanix Pair Trading Analysis

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

In addition to having Nutanix 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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Additional Information and Resources on Investing in Nutanix Stock

When determining whether Nutanix offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Nutanix'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 Nutanix Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nutanix Stock:
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For more detail on how to invest in Nutanix Stock please use our How to Invest in Nutanix guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
To fully project Nutanix's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nutanix 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 Nutanix's income statement, its balance sheet, and the statement of cash flows.
Potential Nutanix investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Nutanix investors may work on each financial statement separately, they are all related. The changes in Nutanix's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nutanix'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.