Golar LNG Operating Margin vs. Return On Equity

GLNG Stock  USD 41.50  0.89  2.19%   
Considering the key profitability indicators obtained from Golar LNG's historical financial statements, Golar LNG Limited may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Golar LNG's ability to earn profits and add value for shareholders.

Golar LNG Operating Profit Margin

0.0503

At this time, Golar LNG's Sales General And Administrative To Revenue is most likely to increase slightly in the upcoming years. The Golar LNG's current Days Of Sales Outstanding is estimated to increase to 73.94, while Operating Cash Flow Sales Ratio is projected to decrease to 0.36. At this time, Golar LNG's Net Income From Continuing Ops is most likely to increase significantly in the upcoming years. The Golar LNG's current Interest Income is estimated to increase to about 59.3 M, while Operating Income is projected to decrease to roughly 19.8 M.
For Golar LNG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Golar LNG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Golar LNG Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Golar LNG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Golar LNG Limited over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Oil & Gas Storage & Transportation 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 Golar LNG. If investors know Golar 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 Golar LNG 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
(0.33)
Dividend Share
1
Earnings Share
0.13
Revenue Per Share
2.626
Quarterly Revenue Growth
(0.04)
The market value of Golar LNG Limited is measured differently than its book value, which is the value of Golar that is recorded on the company's balance sheet. Investors also form their own opinion of Golar LNG's value that differs from its market value or its book value, called intrinsic value, which is Golar LNG'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 Golar LNG's market value can be influenced by many factors that don't directly affect Golar LNG'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 Golar LNG's value and its price as these two are different measures arrived at by different means. Investors typically determine if Golar LNG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Golar LNG'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.

Golar LNG Limited Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Golar LNG's current stock value. Our valuation model uses many indicators to compare Golar LNG value to that of its competitors to determine the firm's financial worth.
Golar LNG Limited is rated below average in operating margin category among its peers. It also is rated below average in return on equity category among its peers . At this time, Golar LNG's Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Golar LNG 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.

Golar Return On Equity vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Golar LNG

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.44) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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.

Golar LNG

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0131
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.

Golar Return On Equity Comparison

Golar LNG is currently under evaluation in return on equity category among its peers.

Golar LNG Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Golar LNG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Golar LNG will eventually generate negative long term returns. The profitability progress is the general direction of Golar LNG's change in net profit over the period of time. It can combine multiple indicators of Golar LNG, 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-5.1 M-5.3 M
Operating Income20.8 M19.8 M
Income Before Tax1.2 M1.2 M
Total Other Income Expense Net-19.6 M-18.6 M
Net Loss-46.8 M-44.5 M
Income Tax Expense1.9 MM
Net Income Applicable To Common Shares905.9 M951.2 M
Net Income From Continuing Ops92.3 M97 M
Interest Income56.4 M59.3 M
Net Interest Income54.5 M57.2 M
Change To Netincome-434 M-412.3 M
Net Loss(0.44)(0.42)
Income Quality(2.89)(3.03)
Net Loss(37.52)(35.65)

Golar Profitability Driver Comparison

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

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Machinery Theme
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When determining whether Golar LNG Limited is a strong investment it is important to analyze Golar LNG'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 Golar LNG's future performance. For an informed investment choice regarding Golar Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Golar LNG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Golar LNG Limited 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 Golar LNG's income statement, its balance sheet, and the statement of cash flows.
Potential Golar LNG investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Golar LNG investors may work on each financial statement separately, they are all related. The changes in Golar LNG's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Golar LNG'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.