Crown Holdings Return On Asset vs. Net Income
| CWN Stock | EUR 78.88 0.42 0.53% |
For Crown Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Crown Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Crown Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Crown Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Crown Holdings over time as well as its relative position and ranking within its peers.
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Crown Holdings Net Income vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Crown Holdings's current stock value. Our valuation model uses many indicators to compare Crown Holdings value to that of its competitors to determine the firm's financial worth. Crown Holdings is number one stock in return on asset category among its peers. It also is number one stock in net income category among its peers making up about 12,912,966,252 of Net Income per Return On Asset. 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 Crown Holdings' earnings, one of the primary drivers of an investment's value.Crown Net Income vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0563 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
Crown Holdings |
| = | 727 M |
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.
Crown Net Income Comparison
Crown Holdings is currently under evaluation in net income category among its peers.
Crown Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Crown Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Crown Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Crown Holdings' change in net profit over the period of time. It can combine multiple indicators of Crown Holdings, 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.
Crown Holdings, Inc. designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific. Crown Holdings, Inc. was founded in 1927 and is headquartered in Yardley, Pennsylvania. CROWN HOLDINGS operates under Packaging Containers classification in Germany and is traded on Frankfurt Stock Exchange. It employs 33000 people.
Crown Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Crown Holdings. 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 Crown Holdings 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 Crown Holdings' important profitability drivers and their relationship over time.
Use Crown Holdings 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 Crown Holdings 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 Crown Holdings will appreciate offsetting losses from the drop in the long position's value.Crown Holdings Pair Trading
Crown Holdings Pair Trading Analysis
The ability to find closely correlated positions to Crown Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Crown Holdings 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 Crown Holdings - 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 Crown Holdings to buy it.
The correlation of Crown Holdings 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 Crown Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Crown Holdings 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 Crown Holdings 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 Crown Holdings position
In addition to having Crown Holdings 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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Additional Information and Resources on Investing in Crown Stock
When determining whether Crown Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Crown Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Crown Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Crown Holdings Stock:Check out Trending Equities. For more detail on how to invest in Crown Stock please use our How to Invest in Crown Holdings guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
To fully project Crown Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Crown Holdings 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 Crown Holdings' income statement, its balance sheet, and the statement of cash flows.