Ethan Allen Return On Asset vs. Revenue

ETD Stock  USD 30.73  0.02  0.07%   
Considering Ethan Allen's profitability and operating efficiency indicators, Ethan Allen Interiors may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Ethan Allen's ability to earn profits and add value for shareholders.
For Ethan Allen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ethan Allen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ethan Allen Interiors utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ethan Allen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ethan Allen Interiors over time as well as its relative position and ranking within its peers.
  
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Is Household Durables 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 Ethan Allen. If investors know Ethan 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 Ethan Allen listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ethan Allen Interiors is measured differently than its book value, which is the value of Ethan that is recorded on the company's balance sheet. Investors also form their own opinion of Ethan Allen's value that differs from its market value or its book value, called intrinsic value, which is Ethan Allen'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 Ethan Allen's market value can be influenced by many factors that don't directly affect Ethan Allen'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 Ethan Allen's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ethan Allen is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ethan Allen'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.

Ethan Allen Interiors Revenue vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ethan Allen's current stock value. Our valuation model uses many indicators to compare Ethan Allen value to that of its competitors to determine the firm's financial worth.
Ethan Allen Interiors is rated # 2 in return on asset category among its peers. It is rated as one of the top companies in revenue category among its peers totaling about  10,065,747,664  of Revenue per Return On Asset. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ethan Allen by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Ethan Revenue 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.

Ethan Allen

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0642
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Ethan Allen

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
646.22 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Ethan Revenue vs Competition

Ethan Allen Interiors is rated as one of the top companies in revenue category among its peers. Market size based on revenue of Consumer Discretionary industry is currently estimated at about 3.5 Billion. Ethan Allen retains roughly 646.22 Million in revenue claiming about 18% of stocks in Consumer Discretionary industry.

Ethan Allen Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ethan Allen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ethan Allen will eventually generate negative long term returns. The profitability progress is the general direction of Ethan Allen's change in net profit over the period of time. It can combine multiple indicators of Ethan Allen, 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.
Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut. Ethan Allen operates under Furnishings, Fixtures Appliances classification in the United States and is traded on New York Stock Exchange. It employs 42 people.

Ethan Profitability Driver Comparison

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

Use Ethan Allen 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 Ethan Allen 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 Ethan Allen will appreciate offsetting losses from the drop in the long position's value.

Ethan Allen Pair Trading

Ethan Allen Interiors Pair Trading Analysis

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

In addition to having Ethan Allen 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 Processed Foods Thematic Idea Now

Processed Foods
Processed Foods Theme
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 46 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 Processed Foods Theme or any other thematic opportunities.
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When determining whether Ethan Allen Interiors is a strong investment it is important to analyze Ethan Allen'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 Ethan Allen's future performance. For an informed investment choice regarding Ethan Stock, refer to the following important reports:
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You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Ethan Allen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ethan Allen Interiors 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 Ethan Allen's income statement, its balance sheet, and the statement of cash flows.
Potential Ethan Allen investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ethan Allen investors may work on each financial statement separately, they are all related. The changes in Ethan Allen's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ethan Allen'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.