Axfood AB Current Ratio vs. Net Income
| AXL1 Stock | EUR 20.43 0.51 2.56% |
For Axfood AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Axfood AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Axfood AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Axfood AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Axfood AB over time as well as its relative position and ranking within its peers.
Axfood |
Axfood AB Net Income vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Axfood AB's current stock value. Our valuation model uses many indicators to compare Axfood AB value to that of its competitors to determine the firm's financial worth. Axfood AB is rated below average in current ratio category among its peers. It is rated second in net income category among its peers making up about 3,470,588,235 of Net Income per Current Ratio. 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 Axfood AB's earnings, one of the primary drivers of an investment's value.Axfood Net Income vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Axfood AB |
| = | 0.68 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
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.
Axfood AB |
| = | 2.36 B |
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.
Axfood Net Income Comparison
Axfood AB is number one stock in net income category among its peers.
Axfood AB Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Axfood AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Axfood AB will eventually generate negative long term returns. The profitability progress is the general direction of Axfood AB's change in net profit over the period of time. It can combine multiple indicators of Axfood AB, 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.
Axfood AB engages in the food retail and wholesale businesses in Sweden. The company was founded in 1958 and is headquartered in Stockholm, Sweden. AXFOOD AB is traded on Frankfurt Stock Exchange in Germany.
Axfood Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Axfood AB. 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 Axfood AB 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 Axfood AB's important profitability drivers and their relationship over time.
Use Axfood AB 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 Axfood AB 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 Axfood AB will appreciate offsetting losses from the drop in the long position's value.Axfood AB Pair Trading
Axfood AB Pair Trading Analysis
The ability to find closely correlated positions to Axfood AB could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Axfood AB 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 Axfood AB - 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 Axfood AB to buy it.
The correlation of Axfood AB 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 Axfood AB moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Axfood AB 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 Axfood AB 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 Axfood AB position
In addition to having Axfood AB 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?
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Other Information on Investing in Axfood Stock
To fully project Axfood AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Axfood AB 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 Axfood AB's income statement, its balance sheet, and the statement of cash flows.