DaVita HealthCare Return On Asset vs. Return On Equity

DVA Stock  USD 153.85  1.65  1.06%   
Based on the measurements of profitability obtained from DaVita HealthCare's financial statements, DaVita HealthCare's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess DaVita HealthCare's ability to earn profits and add value for shareholders. At present, DaVita HealthCare's Days Sales Outstanding is projected to increase based on the last few years of reporting. The current year's EV To Sales is expected to grow to 2.39, whereas Price To Sales Ratio is forecasted to decline to 0.74. At present, DaVita HealthCare's Income Tax Expense is projected to decrease significantly based on the last few years of reporting. The current year's Net Income Per Share is expected to grow to 8.00, whereas Accumulated Other Comprehensive Income is forecasted to decline to (54.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.3147
Significantly Up
Very volatile
Net Profit Margin0.04680.057
Significantly Down
Pretty Stable
Operating Profit Margin0.170.132
Significantly Up
Pretty Stable
Pretax Profit Margin0.080.097
Significantly Down
Pretty Stable
Return On Assets0.03550.0409
Fairly Down
Very volatile
For DaVita HealthCare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DaVita HealthCare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DaVita HealthCare Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DaVita HealthCare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DaVita HealthCare Partners over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities.
Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DaVita HealthCare. If investors know DaVita will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DaVita HealthCare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.05)
Earnings Share
9.28
Revenue Per Share
145.293
Quarterly Revenue Growth
0.046
Return On Assets
0.0694
The market value of DaVita HealthCare is measured differently than its book value, which is the value of DaVita that is recorded on the company's balance sheet. Investors also form their own opinion of DaVita HealthCare's value that differs from its market value or its book value, called intrinsic value, which is DaVita HealthCare's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DaVita HealthCare's market value can be influenced by many factors that don't directly affect DaVita HealthCare's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DaVita HealthCare's value and its price as these two are different measures arrived at by different means. Investors typically determine if DaVita HealthCare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DaVita HealthCare's 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.

DaVita HealthCare Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining DaVita HealthCare's current stock value. Our valuation model uses many indicators to compare DaVita HealthCare value to that of its competitors to determine the firm's financial worth.
DaVita HealthCare Partners is rated # 4 in return on asset category among its peers. It is rated # 2 in return on equity category among its peers reporting about  6.47  of Return On Equity per Return On Asset. At present, DaVita HealthCare's Return On Equity is projected to increase slightly 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 DaVita HealthCare's earnings, one of the primary drivers of an investment's value.

DaVita Return On Equity 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.

DaVita HealthCare

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0694
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.
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.

DaVita HealthCare

Return On Equity

 = 

Net Income

Total Equity

 = 
0.45
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.

DaVita Return On Equity Comparison

DaVita HealthCare is currently under evaluation in return on equity category among its peers.

DaVita HealthCare Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in DaVita HealthCare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DaVita HealthCare will eventually generate negative long term returns. The profitability progress is the general direction of DaVita HealthCare's change in net profit over the period of time. It can combine multiple indicators of DaVita HealthCare, 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 Income-52.1 M-54.7 M
Operating Income1.6 B998.7 M
Income Before Tax1.2 B731.9 M
Total Other Income Expense Net-425.7 M-404.4 M
Net Income691.5 M478.4 M
Income Tax Expense220.1 M222 M
Net Income Applicable To Common Shares644.5 M491.9 M
Net Income From Continuing Ops957 M878 M
Non Operating Income Net Other-18.1 M-17.2 M
Interest Income321.3 M317.9 M
Net Interest Income-398.6 M-418.5 M
Change To Netincome57.8 M54.9 M
Net Income Per Share 7.62  8.00 
Income Quality 2.98  2.65 
Net Income Per E B T 0.59  0.46 

DaVita Profitability Driver Comparison

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

Use DaVita HealthCare 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 DaVita HealthCare 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 DaVita HealthCare will appreciate offsetting losses from the drop in the long position's value.

DaVita HealthCare Pair Trading

DaVita HealthCare Partners Pair Trading Analysis

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

In addition to having DaVita HealthCare 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 Cleaning Thematic Idea Now

Cleaning
Cleaning Theme
Compnanies producing and distributing cleaning products, supplies, and accessories. The Cleaning theme has 42 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 Cleaning Theme or any other thematic opportunities.
View All  Next Launch
When determining whether DaVita HealthCare offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DaVita HealthCare's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Davita Healthcare Partners Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Davita Healthcare Partners Stock:
Check out Investing Opportunities.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project DaVita HealthCare's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DaVita HealthCare 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 DaVita HealthCare's income statement, its balance sheet, and the statement of cash flows.
Potential DaVita HealthCare investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DaVita HealthCare investors may work on each financial statement separately, they are all related. The changes in DaVita HealthCare's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DaVita HealthCare'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.