Ithaca Energy Operating Margin vs. Return On Equity

ITH Stock   107.40  0.80  0.75%   
Based on the key profitability measurements obtained from Ithaca Energy's financial statements, Ithaca Energy PLC 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 Ithaca Energy's ability to earn profits and add value for shareholders.
For Ithaca Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ithaca Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ithaca Energy PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ithaca Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ithaca Energy PLC over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Please note, there is a significant difference between Ithaca Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ithaca Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ithaca Energy'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.

Ithaca Energy PLC Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ithaca Energy's current stock value. Our valuation model uses many indicators to compare Ithaca Energy value to that of its competitors to determine the firm's financial worth.
Ithaca Energy PLC is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in return on equity category among its peers reporting about  0.32  of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Ithaca Energy PLC is roughly  3.13 . 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 Ithaca Energy's earnings, one of the primary drivers of an investment's value.

Ithaca 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.

Ithaca Energy

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.20 %
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.

Ithaca Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0651
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.

Ithaca Return On Equity Comparison

Ithaca Energy is currently under evaluation in return on equity category among its peers.

Ithaca Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ithaca Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ithaca Energy will eventually generate negative long term returns. The profitability progress is the general direction of Ithaca Energy's change in net profit over the period of time. It can combine multiple indicators of Ithaca Energy, 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 Income241.3 M253.4 M
Operating Income486.1 M510.4 M
Income Before Tax302 M164.9 M
Total Other Income Expense Net-184 M-193.2 M
Net Income302 M245.1 M
Income Tax Expense86.4 M82.1 M

Ithaca Profitability Driver Comparison

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

Use Ithaca Energy 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 Ithaca Energy 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 Ithaca Energy will appreciate offsetting losses from the drop in the long position's value.

Ithaca Energy Pair Trading

Ithaca Energy PLC Pair Trading Analysis

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

In addition to having Ithaca Energy 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.

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Other Information on Investing in Ithaca Stock

To fully project Ithaca Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ithaca Energy PLC 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 Ithaca Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Ithaca Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ithaca Energy investors may work on each financial statement separately, they are all related. The changes in Ithaca Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ithaca Energy'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.