Asbury Automotive Gross Profit vs. Operating Margin
| AWG Stock | EUR 234.00 4.00 1.68% |
For Asbury Automotive profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Asbury Automotive to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Asbury Automotive Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Asbury Automotive's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Asbury Automotive Group over time as well as its relative position and ranking within its peers.
Asbury |
Asbury Automotive Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Asbury Automotive's current stock value. Our valuation model uses many indicators to compare Asbury Automotive value to that of its competitors to determine the firm's financial worth. Asbury Automotive Group is rated below average in gross profit category among its peers. It is rated fourth in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Asbury Automotive Group is about 37,583,030,303 . 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 Asbury Automotive's earnings, one of the primary drivers of an investment's value.Asbury 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.
Asbury Automotive |
| = | 3.1 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.
Asbury Automotive |
| = | 0.08 % |
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.
Asbury Operating Margin Comparison
Asbury Automotive is rated third in operating margin category among its peers.
Asbury Automotive Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Asbury Automotive, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Asbury Automotive will eventually generate negative long term returns. The profitability progress is the general direction of Asbury Automotive's change in net profit over the period of time. It can combine multiple indicators of Asbury Automotive, 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.
Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. Asbury Automotive Group, Inc. was founded in 2002 and is headquartered in Duluth, Georgia. ASBURY AUTOMOTIVE operates under Auto Truck Dealerships classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8200 people.
Asbury Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Asbury Automotive. 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 Asbury Automotive 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 Asbury Automotive's important profitability drivers and their relationship over time.
Use Asbury Automotive 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 Asbury Automotive 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 Asbury Automotive will appreciate offsetting losses from the drop in the long position's value.Asbury Automotive Pair Trading
Asbury Automotive Group Pair Trading Analysis
The ability to find closely correlated positions to Asbury Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Asbury Automotive 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 Asbury Automotive - 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 Asbury Automotive Group to buy it.
The correlation of Asbury Automotive 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 Asbury Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Asbury Automotive 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 Asbury Automotive 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 Asbury Automotive position
In addition to having Asbury Automotive 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 Money Funds Thematic Idea Now
Money Funds
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 32 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 Money Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Asbury Stock
When determining whether Asbury Automotive is a strong investment it is important to analyze Asbury Automotive'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 Asbury Automotive's future performance. For an informed investment choice regarding Asbury Stock, refer to the following important reports:Check out Trending Equities. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Asbury Automotive's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Asbury Automotive 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 Asbury Automotive's income statement, its balance sheet, and the statement of cash flows.