Aeorema Communications Gross Profit vs. Net Income

AEO Stock   58.50  2.00  3.54%   
Based on Aeorema Communications' profitability indicators, Aeorema Communications Plc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Aeorema Communications' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2002-01-31
Previous Quarter
2.7 M
Current Value
1.5 M
Quarterly Volatility
445.9 K
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
For Aeorema Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aeorema Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aeorema Communications Plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aeorema Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aeorema Communications Plc 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 Aeorema Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Aeorema Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aeorema Communications' 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.

Aeorema Communications Net Income vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Aeorema Communications's current stock value. Our valuation model uses many indicators to compare Aeorema Communications value to that of its competitors to determine the firm's financial worth.
Aeorema Communications Plc is rated below average in gross profit category among its peers. It also is rated below average in net income category among its peers making up about  0.14  of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Aeorema Communications Plc is roughly  6.95 . At present, Aeorema Communications' Gross Profit is projected to increase significantly based on the last few years of reporting. 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 Aeorema Communications' earnings, one of the primary drivers of an investment's value.

Aeorema Net Income 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.

Aeorema Communications

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
3.04 M
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Aeorema Communications

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
436.93 K
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Aeorema Net Income Comparison

Aeorema Communications is rated below average in net income category among its peers.

Aeorema Communications Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Aeorema Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aeorema Communications will eventually generate negative long term returns. The profitability progress is the general direction of Aeorema Communications' change in net profit over the period of time. It can combine multiple indicators of Aeorema Communications, 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 Income482.5 K506.7 K
Operating Income440.7 K462.8 K
Income Before Tax436.9 K458.8 K
Total Other Income Expense Net-3.8 K-4 K
Net Income Applicable To Common Shares735.2 K772 K
Net Income436.9 K458.8 K
Income Tax Expense140.2 K147.2 K
Net Income From Continuing Ops870.8 K914.3 K
Net Interest Income-42.3 K-40.2 K
Interest Income 193.50  183.83 
Change To Netincome328 K344.4 K

Aeorema Profitability Driver Comparison

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

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

Aeorema Communications Pair Trading

Aeorema Communications Plc Pair Trading Analysis

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

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Latest Gainers Theme
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Other Information on Investing in Aeorema Stock

To fully project Aeorema Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Aeorema 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 Aeorema Communications' income statement, its balance sheet, and the statement of cash flows.
Potential Aeorema Communications investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Aeorema Communications investors may work on each financial statement separately, they are all related. The changes in Aeorema Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Aeorema Communications'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.