Interactive Digital Operating Margin vs. Return On Equity
| 6486 Stock | TWD 81.20 0.60 0.73% |
For Interactive Digital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Interactive Digital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Interactive Digital Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Interactive Digital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Interactive Digital Technologies over time as well as its relative position and ranking within its peers.
Interactive |
Interactive Digital Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Interactive Digital's current stock value. Our valuation model uses many indicators to compare Interactive Digital value to that of its competitors to determine the firm's financial worth. Interactive Digital Technologies is number one stock in operating margin category among its peers. It also is number one stock in return on equity category among its peers reporting about 1.24 of Return On Equity per Operating Margin. 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 Interactive Digital's earnings, one of the primary drivers of an investment's value.Interactive Return On Equity 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.
Interactive Digital |
| = | 0.15 % |
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.
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.
Interactive Digital |
| = | 0.19 |
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.
Interactive Return On Equity Comparison
Interactive Digital is currently under evaluation in return on equity category among its peers.
Interactive Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Interactive 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 Interactive 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 Interactive Digital's important profitability drivers and their relationship over time.
Use Interactive 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 Interactive 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 Interactive Digital will appreciate offsetting losses from the drop in the long position's value.Interactive Digital Pair Trading
Interactive Digital Technologies Pair Trading Analysis
The ability to find closely correlated positions to Interactive 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 Interactive 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 Interactive 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 Interactive Digital Technologies to buy it.
The correlation of Interactive 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 Interactive Digital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Interactive 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 Interactive 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 Interactive Digital position
In addition to having Interactive 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 Conservative Funds Thematic Idea Now
Conservative Funds
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 40 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 Conservative Funds Theme or any other thematic opportunities.
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Additional Tools for Interactive Stock Analysis
When running Interactive Digital's price analysis, check to measure Interactive Digital'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 Interactive Digital is operating at the current time. Most of Interactive Digital's value examination focuses on studying past and present price action to predict the probability of Interactive Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Interactive Digital's price. Additionally, you may evaluate how the addition of Interactive Digital to your portfolios can decrease your overall portfolio volatility.