LightPath Technologies Gross Profit vs. Return On Equity

LPTH Stock  USD 1.83  0.03  1.61%   
Based on LightPath Technologies' profitability indicators, LightPath Technologies may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess LightPath Technologies' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1995-09-30
Previous Quarter
2.5 M
Current Value
2.8 M
Quarterly Volatility
1.3 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, LightPath Technologies' Days Sales Outstanding is decreasing as compared to previous years. The LightPath Technologies' current Operating Cash Flow Sales Ratio is estimated to increase to 0.02, while Price To Sales Ratio is projected to decrease to 1.49. As of now, LightPath Technologies' Accumulated Other Comprehensive Income is increasing as compared to previous years. The LightPath Technologies' current Change To Netincome is estimated to increase to about 1.5 M, while Operating Income is projected to decrease to (8.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.410.2721
Way Up
Slightly volatile
For LightPath Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LightPath Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LightPath Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LightPath Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LightPath Technologies over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more detail on how to invest in LightPath Stock please use our How to Invest in LightPath Technologies guide.
Is Electronic Equipment, Instruments & Components 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 LightPath Technologies. If investors know LightPath 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 LightPath Technologies 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
49.113
Earnings Share
(0.21)
Revenue Per Share
0.833
Quarterly Revenue Growth
0.04
Return On Assets
(0.09)
The market value of LightPath Technologies is measured differently than its book value, which is the value of LightPath that is recorded on the company's balance sheet. Investors also form their own opinion of LightPath Technologies' value that differs from its market value or its book value, called intrinsic value, which is LightPath Technologies' 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 LightPath Technologies' market value can be influenced by many factors that don't directly affect LightPath Technologies' 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 LightPath Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if LightPath Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LightPath Technologies' 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.

LightPath Technologies Return On Equity vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining LightPath Technologies's current stock value. Our valuation model uses many indicators to compare LightPath Technologies value to that of its competitors to determine the firm's financial worth.
LightPath Technologies is rated below average in gross profit category among its peers. It is rated below average in return on equity category among its peers . As of now, LightPath Technologies' Gross Profit 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 LightPath Technologies' earnings, one of the primary drivers of an investment's value.

LightPath Return On Equity 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.

LightPath Technologies

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
11.07 M
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 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.

LightPath Technologies

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.26
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.

LightPath Return On Equity Comparison

LightPath Technologies is currently under evaluation in return on equity category among its peers.

LightPath Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in LightPath Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LightPath Technologies will eventually generate negative long term returns. The profitability progress is the general direction of LightPath Technologies' change in net profit over the period of time. It can combine multiple indicators of LightPath Technologies, 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 Income509.9 K535.4 K
Operating Income-7.8 M-8.2 M
Income Before Tax-7.9 M-8.3 M
Total Other Income Expense Net-113.2 K-118.9 K
Net Loss-8 M-8.4 M
Income Tax Expense67.5 K64.1 K
Net Loss-8 M-7.6 M
Non Operating Income Net Other-174.8 K-183.5 K
Net Loss-3.6 M-3.5 M
Interest Income801.7 K560 K
Net Interest Income-191.9 K-201.5 K
Change To Netincome1.4 M1.5 M
Net Loss(0.21)(0.22)
Income Quality(0.07)(0.06)
Net Income Per E B T 1.01  1.74 

LightPath Profitability Driver Comparison

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

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

LightPath Technologies Pair Trading

LightPath Technologies Pair Trading Analysis

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

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Coal
Coal Theme
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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 Coal Theme or any other thematic opportunities.
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When determining whether LightPath Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LightPath Technologies' 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 Lightpath Technologies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lightpath Technologies Stock:
Check out Correlation Analysis.
For more detail on how to invest in LightPath Stock please use our How to Invest in LightPath Technologies guide.
You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
To fully project LightPath Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LightPath Technologies 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 LightPath Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential LightPath Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although LightPath Technologies investors may work on each financial statement separately, they are all related. The changes in LightPath Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on LightPath Technologies'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.