Deckers Outdoor Return On Equity vs. Net Income
| DO2 Stock | EUR 194.50 1.95 0.99% |
For Deckers Outdoor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Deckers Outdoor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Deckers Outdoor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Deckers Outdoor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Deckers Outdoor over time as well as its relative position and ranking within its peers.
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Deckers Outdoor Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Deckers Outdoor's current stock value. Our valuation model uses many indicators to compare Deckers Outdoor value to that of its competitors to determine the firm's financial worth. Deckers Outdoor is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in net income category among its peers making up about 1,525,308,809 of Net Income per Return On Equity. 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 Deckers Outdoor's earnings, one of the primary drivers of an investment's value.Deckers Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.3 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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.
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| = | 451.95 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.
Deckers Net Income Comparison
Deckers Outdoor is currently under evaluation in net income category among its peers.
Deckers Outdoor Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Deckers Outdoor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Deckers Outdoor will eventually generate negative long term returns. The profitability progress is the general direction of Deckers Outdoor's change in net profit over the period of time. It can combine multiple indicators of Deckers Outdoor, 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.
Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. The company was founded in 1973 and is headquartered in Goleta, California. DECKERS OUTDOOR operates under Footwear Accessories classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3500 people.
Deckers Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Deckers Outdoor. 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 Deckers Outdoor 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 Deckers Outdoor's important profitability drivers and their relationship over time.
Use Deckers Outdoor 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 Deckers Outdoor 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 Deckers Outdoor will appreciate offsetting losses from the drop in the long position's value.Deckers Outdoor Pair Trading
Deckers Outdoor Pair Trading Analysis
The ability to find closely correlated positions to Deckers Outdoor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Deckers Outdoor 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 Deckers Outdoor - 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 Deckers Outdoor to buy it.
The correlation of Deckers Outdoor 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 Deckers Outdoor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Deckers Outdoor 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 Deckers Outdoor 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 Deckers Outdoor position
In addition to having Deckers Outdoor 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 Business Supplies Thematic Idea Now
Business Supplies
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Supplies theme has 24 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 Business Supplies Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Deckers Stock
When determining whether Deckers Outdoor 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 Deckers 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 Deckers Outdoor Stock. Highlighted below are key reports to facilitate an investment decision about Deckers Outdoor Stock:Check out Investing Opportunities. For more detail on how to invest in Deckers Stock please use our How to Invest in Deckers Outdoor guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
To fully project Deckers Outdoor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Deckers Outdoor 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 Deckers Outdoor's income statement, its balance sheet, and the statement of cash flows.