Logitech International Return On Equity vs. Profit Margin

LOGI Stock  USD 83.66  1.90  2.32%   
Taking into consideration Logitech International's profitability measurements, Logitech International's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Logitech International's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.27405465
Current Value
0.14
Quarterly Volatility
0.16016451
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Logitech International's Operating Cash Flow Sales Ratio is increasing as compared to previous years. The Logitech International's current Days Of Sales Outstanding is estimated to increase to 54.65, while Price To Sales Ratio is projected to decrease to 3.12. As of now, Logitech International's Net Income is increasing as compared to previous years. The Logitech International's current Net Income From Continuing Ops is estimated to increase to about 642.8 M, while Accumulated Other Comprehensive Income is projected to decrease to (116.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.4162
Way Down
Slightly volatile
For Logitech International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Logitech International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Logitech International SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Logitech International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Logitech International SA over time as well as its relative position and ranking within its peers.
  

Logitech International's Revenue Breakdown by Earning Segment

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Is Technology Hardware, Storage & Peripherals 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 Logitech International. If investors know Logitech 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 Logitech International 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
0.105
Dividend Share
1.28
Earnings Share
4.48
Revenue Per Share
29.03
Quarterly Revenue Growth
0.056
The market value of Logitech International is measured differently than its book value, which is the value of Logitech that is recorded on the company's balance sheet. Investors also form their own opinion of Logitech International's value that differs from its market value or its book value, called intrinsic value, which is Logitech International'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 Logitech International's market value can be influenced by many factors that don't directly affect Logitech International'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 Logitech International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Logitech International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Logitech International'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.

Logitech International Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Logitech International's current stock value. Our valuation model uses many indicators to compare Logitech International value to that of its competitors to determine the firm's financial worth.
Logitech International SA is rated fourth overall in return on equity category among its peers. It is rated third overall in profit margin category among its peers fabricating about  0.47  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Logitech International SA is roughly  2.13 . As of now, Logitech International's Return On Equity is increasing as compared to previous years. 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 Logitech International's earnings, one of the primary drivers of an investment's value.

Logitech International's Earnings Breakdown by Geography

Logitech Profit Margin vs. Return On Equity

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.

Logitech International

Return On Equity

 = 

Net Income

Total Equity

 = 
0.33
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.
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.

Logitech International

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.16 %
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.

Logitech Profit Margin Comparison

Logitech International is currently under evaluation in profit margin category among its peers.

Logitech International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Logitech International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Logitech International will eventually generate negative long term returns. The profitability progress is the general direction of Logitech International's change in net profit over the period of time. It can combine multiple indicators of Logitech International, 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-111.2 M-116.8 M
Operating Income587.3 M616.7 M
Income Before Tax621.6 M652.7 M
Total Other Income Expense Net34.3 M36 M
Net Income612.1 M642.8 M
Income Tax Expense9.5 MM
Net Income Applicable To Common Shares419.3 M210.8 M
Net Income From Continuing Ops612.1 M642.8 M
Non Operating Income Net Other-12 M-11.4 M
Interest Income50.6 M53.2 M
Net Interest Income50.6 M53.2 M
Change To Netincome101.1 M51 M
Net Income Per Share 3.87  4.06 
Income Quality 1.87  1.74 
Net Income Per E B T 0.98  0.71 

Logitech Profitability Driver Comparison

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

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When determining whether Logitech International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Logitech International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Logitech International Sa Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Logitech International Sa Stock:
To fully project Logitech International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Logitech International 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 Logitech International's income statement, its balance sheet, and the statement of cash flows.
Potential Logitech International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Logitech International investors may work on each financial statement separately, they are all related. The changes in Logitech International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Logitech International'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.