Husqvarna Gross Profit vs. Return On Asset
| HUSQ-A Stock | SEK 62.70 0.10 0.16% |
For Husqvarna profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Husqvarna to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Husqvarna AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Husqvarna's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Husqvarna AB over time as well as its relative position and ranking within its peers.
Husqvarna |
Husqvarna AB Return On Asset vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Husqvarna's current stock value. Our valuation model uses many indicators to compare Husqvarna value to that of its competitors to determine the firm's financial worth. Husqvarna AB is one of the top stocks in gross profit category among its peers. It also is one of the top stocks in return on asset category among its peers . The ratio of Gross Profit to Return On Asset for Husqvarna AB is about 300,983,302,412 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Husqvarna by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Husqvarna's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Husqvarna Return On Asset vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Husqvarna |
| = | 16.22 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Husqvarna |
| = | 0.0539 |
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.
Husqvarna Return On Asset Comparison
Husqvarna is currently under evaluation in return on asset category among its peers.
Husqvarna Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Husqvarna, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Husqvarna will eventually generate negative long term returns. The profitability progress is the general direction of Husqvarna's change in net profit over the period of time. It can combine multiple indicators of Husqvarna, 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.
Husqvarna AB produces and sells outdoor power and garden watering products, and cutting equipment and diamond tools. Husqvarna AB was founded in 1689 and is headquartered in Stockholm, Sweden. Husqvarna is traded on Stockholm Stock Exchange in Sweden.
Husqvarna Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Husqvarna. 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 Husqvarna 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 Husqvarna's important profitability drivers and their relationship over time.
Use Husqvarna 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 Husqvarna 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 Husqvarna will appreciate offsetting losses from the drop in the long position's value.Husqvarna Pair Trading
Husqvarna AB Pair Trading Analysis
The ability to find closely correlated positions to Husqvarna could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Husqvarna 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 Husqvarna - 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 Husqvarna AB to buy it.
The correlation of Husqvarna 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 Husqvarna moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Husqvarna AB 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 Husqvarna 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 Husqvarna position
In addition to having Husqvarna 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?
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Other Information on Investing in Husqvarna Stock
To fully project Husqvarna's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Husqvarna AB 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 Husqvarna's income statement, its balance sheet, and the statement of cash flows.