KOMATSU Gross Profit vs. Profit Margin

KOMA Stock  EUR 25.20  0.20  0.80%   
Based on KOMATSU's profitability indicators, KOMATSU LTD SPONS may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess KOMATSU's ability to earn profits and add value for shareholders.
For KOMATSU profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KOMATSU to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KOMATSU LTD SPONS utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KOMATSU's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KOMATSU LTD SPONS over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between KOMATSU's value and its price as these two are different measures arrived at by different means. Investors typically determine if KOMATSU is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KOMATSU'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.

KOMATSU LTD SPONS Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining KOMATSU's current stock value. Our valuation model uses many indicators to compare KOMATSU value to that of its competitors to determine the firm's financial worth.
KOMATSU LTD SPONS is rated second overall in gross profit category among its peers. It is rated fifth overall in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for KOMATSU LTD SPONS is about  8,604,591,611,479 . 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 KOMATSU's earnings, one of the primary drivers of an investment's value.

KOMATSU Profit Margin 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.

KOMATSU

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
779.58 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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

KOMATSU

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.09 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

KOMATSU Profit Margin Comparison

KOMATSU is rated fourth overall in profit margin category among its peers.

KOMATSU Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in KOMATSU, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KOMATSU will eventually generate negative long term returns. The profitability progress is the general direction of KOMATSU's change in net profit over the period of time. It can combine multiple indicators of KOMATSU, 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.
Komatsu Ltd. manufactures and sells construction, mining, and utility equipment and forest and industrial machinery worldwide. Komatsu Ltd. was founded in 1884 and is headquartered in Tokyo, Japan. KOMATSU operates under Farm Heavy Construction Machinery classification in Germany and is traded on Frankfurt Stock Exchange. It employs 61564 people.

KOMATSU Profitability Driver Comparison

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

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

KOMATSU Pair Trading

KOMATSU LTD SPONS Pair Trading Analysis

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

In addition to having KOMATSU 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 Social Domain Thematic Idea Now

Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 39 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 Social Domain Theme or any other thematic opportunities.
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Other Information on Investing in KOMATSU Stock

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