GEAR4MUSIC Return On Equity vs. Current Ratio
| G4A Stock | EUR 1.95 0.06 3.17% |
For GEAR4MUSIC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GEAR4MUSIC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GEAR4MUSIC LS 10 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GEAR4MUSIC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GEAR4MUSIC LS 10 over time as well as its relative position and ranking within its peers.
GEAR4MUSIC |
GEAR4MUSIC LS 10 Current Ratio vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GEAR4MUSIC's current stock value. Our valuation model uses many indicators to compare GEAR4MUSIC value to that of its competitors to determine the firm's financial worth. GEAR4MUSIC LS 10 is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in current ratio category among its peers fabricating about 43.76 of Current Ratio 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 GEAR4MUSIC's earnings, one of the primary drivers of an investment's value.GEAR4MUSIC Current Ratio 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.
GEAR4MUSIC |
| = | 0.0425 |
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.
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.
GEAR4MUSIC |
| = | 1.86 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).
GEAR4MUSIC Current Ratio Comparison
GEAR4MUSIC is currently under evaluation in current ratio category among its peers.
GEAR4MUSIC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GEAR4MUSIC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GEAR4MUSIC will eventually generate negative long term returns. The profitability progress is the general direction of GEAR4MUSIC's change in net profit over the period of time. It can combine multiple indicators of GEAR4MUSIC, 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.
Gear4music plc engages in the retail of musical instruments and equipment in the United Kingdom, rest of Europe, and internationally. The company was founded in 1995 and is headquartered in York, the United Kingdom. GEAR4MUSIC is traded on Frankfurt Stock Exchange in Germany.
GEAR4MUSIC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GEAR4MUSIC. 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 GEAR4MUSIC 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 GEAR4MUSIC's important profitability drivers and their relationship over time.
Use GEAR4MUSIC 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 GEAR4MUSIC 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 GEAR4MUSIC will appreciate offsetting losses from the drop in the long position's value.GEAR4MUSIC Pair Trading
GEAR4MUSIC LS 10 Pair Trading Analysis
The ability to find closely correlated positions to GEAR4MUSIC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GEAR4MUSIC 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 GEAR4MUSIC - 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 GEAR4MUSIC LS 10 to buy it.
The correlation of GEAR4MUSIC 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 GEAR4MUSIC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GEAR4MUSIC LS 10 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 GEAR4MUSIC 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 GEAR4MUSIC position
In addition to having GEAR4MUSIC 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 Services Thematic Idea Now
Business Services
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 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 Services Theme or any other thematic opportunities.
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Other Information on Investing in GEAR4MUSIC Stock
To fully project GEAR4MUSIC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GEAR4MUSIC LS 10 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 GEAR4MUSIC's income statement, its balance sheet, and the statement of cash flows.