Barrick Gold Gross Profit vs. Operating Margin

ABX Stock  CAD 24.31  0.08  0.33%   
Based on the measurements of profitability obtained from Barrick Gold's financial statements, Barrick Gold's profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Barrick Gold's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1986-03-31
Previous Quarter
1.2 B
Current Value
1.3 B
Quarterly Volatility
567.8 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Barrick Gold's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, Days Sales Outstanding is likely to grow to 39.41, while Sales General And Administrative To Revenue is likely to drop 0.01. At this time, Barrick Gold's Income Quality is very stable compared to the past year. As of the 11th of December 2024, Net Income Per E B T is likely to grow to 0.90, while Operating Income is likely to drop about 1.9 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.304
Way Up
Slightly volatile
Operating Profit Margin0.230.2166
Notably Up
Slightly volatile
For Barrick Gold profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Barrick Gold to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Barrick Gold Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Barrick Gold's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Barrick Gold Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Barrick Gold's value and its price as these two are different measures arrived at by different means. Investors typically determine if Barrick Gold is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Barrick Gold'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.

Barrick Gold Corp Operating Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Barrick Gold's current stock value. Our valuation model uses many indicators to compare Barrick Gold value to that of its competitors to determine the firm's financial worth.
Barrick Gold Corp is number one stock in gross profit category among its peers. It also is number one stock in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Barrick Gold Corp is about  11,230,569,948 . At this time, Barrick Gold's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Barrick Gold by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Barrick Gold's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Barrick Operating Margin 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.

Barrick Gold

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
3.47 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.
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.

Barrick Gold

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.31 %
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.

Barrick Operating Margin Comparison

Barrick Gold is currently under evaluation in operating margin category among its peers.

Barrick Gold Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Barrick Gold, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Barrick Gold will eventually generate negative long term returns. The profitability progress is the general direction of Barrick Gold's change in net profit over the period of time. It can combine multiple indicators of Barrick Gold, 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 Income24 M25.2 M
Operating IncomeB1.9 B
Total Other Income Expense Net-164 M-172.2 M
Net IncomeB2.1 B
Income Tax Expense861 M437.4 M
Income Before Tax2.8 BB
Net Income From Continuing OpsB2.1 B
Net Income Applicable To Common Shares496.8 M521.6 M
Interest Income21 M19.9 M
Net Interest Income-64 M-67.2 M
Change To Netincome767.7 M729.3 M
Net Income Per Share 0.72  0.76 
Income Quality 1.91  2.01 
Net Income Per E B T 0.45  0.90 

Barrick Profitability Driver Comparison

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

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

Barrick Gold Pair Trading

Barrick Gold Corp Pair Trading Analysis

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

In addition to having Barrick Gold 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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Chemicals Makers Theme
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 39 constituents at this time.
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When determining whether Barrick Gold Corp is a strong investment it is important to analyze Barrick Gold's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Barrick Gold's future performance. For an informed investment choice regarding Barrick Stock, refer to the following important reports:
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You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Barrick Gold's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Barrick Gold Corp 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 Barrick Gold's income statement, its balance sheet, and the statement of cash flows.
Potential Barrick Gold investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Barrick Gold investors may work on each financial statement separately, they are all related. The changes in Barrick Gold's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Barrick Gold'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.