Merrill Lynch Profitability Analysis
| IPB Stock | USD 26.30 0.15 0.57% |
Net Income | First Reported 2010-12-31 | Previous Quarter 333.5 M | Current Value 350.2 M | Quarterly Volatility 720.1 M |
For Merrill Lynch profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merrill Lynch to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merrill Lynch Depositor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merrill Lynch's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merrill Lynch Depositor over time as well as its relative position and ranking within its peers.
Merrill |
Is Asset Management & Custody Banks 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 Merrill Lynch. If investors know Merrill 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 Merrill Lynch 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 Merrill Lynch Depositor is measured differently than its book value, which is the value of Merrill that is recorded on the company's balance sheet. Investors also form their own opinion of Merrill Lynch's value that differs from its market value or its book value, called intrinsic value, which is Merrill Lynch'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 Merrill Lynch's market value can be influenced by many factors that don't directly affect Merrill Lynch'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 Merrill Lynch's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merrill Lynch is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merrill Lynch'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.
Merrill Lynch Depositor Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merrill Lynch's current stock value. Our valuation model uses many indicators to compare Merrill Lynch value to that of its competitors to determine the firm's financial worth. Merrill Lynch Depositor is currently regarded as number one stock in ebitda category among its peers. It also is currently regarded as number one stock in net income category among its peers making up about 0.05 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Merrill Lynch Depositor is roughly 18.68 . At present, Merrill Lynch's EBITDA is projected to increase significantly 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 Merrill Lynch's earnings, one of the primary drivers of an investment's value.Merrill Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Merrill Lynch |
| = | 5.42 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Merrill Lynch |
| = | 290 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Merrill Net Income Comparison
Merrill Lynch is currently under evaluation in net income category among its peers.
Merrill Lynch Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Merrill Lynch, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Merrill Lynch will eventually generate negative long term returns. The profitability progress is the general direction of Merrill Lynch's change in net profit over the period of time. It can combine multiple indicators of Merrill Lynch, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -474.3 M | -498 M | |
| Operating Income | 333.5 M | 350.2 M | |
| Income Before Tax | -2.6 B | -2.7 B | |
| Total Other Income Expense Net | -2.3 B | -2.2 B | |
| Net Income | 333.5 M | 350.2 M | |
| Income Tax Expense | -2.9 B | -3.1 B | |
| Income Quality | 55.19 | 57.94 | |
| Net Loss | (0.15) | (0.14) |
Merrill Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merrill Lynch. 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 Merrill Lynch 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 Merrill Lynch's important profitability drivers and their relationship over time.
| Revenue vs EBITDA | ||
| Net Income vs Market Capitalization | ||
| Revenue vs Cash Flow From Operations | ||
| Total Asset vs Market Capitalization | ||
| Revenue vs Retained Earnings |
Merrill Lynch Profitability Trends
Merrill Lynch profitability trend refers to the progression of profit or loss within a business. An upward trend means that Merrill Lynch's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Merrill Lynch's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Merrill Lynch Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Merrill Lynch different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Merrill Lynch in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Merrill Lynch's future profitability.
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Use Merrill Lynch 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 Merrill Lynch 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 Merrill Lynch will appreciate offsetting losses from the drop in the long position's value.Merrill Lynch Pair Trading
Merrill Lynch Depositor Pair Trading Analysis
The ability to find closely correlated positions to Merrill Lynch could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merrill Lynch 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 Merrill Lynch - 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 Merrill Lynch Depositor to buy it.
The correlation of Merrill Lynch 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 Merrill Lynch moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merrill Lynch Depositor 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 Merrill Lynch 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 Merrill Lynch position
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Check out Risk vs Return Analysis. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project Merrill Lynch's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Merrill Lynch Depositor 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 Merrill Lynch's income statement, its balance sheet, and the statement of cash flows.