Merck KGaA Gross Profit vs. Cash Flow From Operations
| MRK Stock | 139.95 2.10 1.52% |
For Merck KGaA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Merck KGaA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Merck KGaA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Merck KGaA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Merck KGaA over time as well as its relative position and ranking within its peers.
Merck |
Merck KGaA Cash Flow From Operations vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Merck KGaA's current stock value. Our valuation model uses many indicators to compare Merck KGaA value to that of its competitors to determine the firm's financial worth. Merck KGaA is regarded second in gross profit category among its peers. It also is regarded second in cash flow from operations category among its peers making about 0.37 of Cash Flow From Operations per Gross Profit. The ratio of Gross Profit to Cash Flow From Operations for Merck KGaA is roughly 2.68 . 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 Merck KGaA's earnings, one of the primary drivers of an investment's value.Merck Cash Flow From Operations 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.
Merck KGaA |
| = | 12.36 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.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Merck KGaA |
| = | 4.62 B |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Merck Cash Flow From Operations Comparison
Merck KGaA is considered to be number one stock in cash flow from operations category among its peers.
Merck Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Merck KGaA. 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 Merck KGaA 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 Merck KGaA's important profitability drivers and their relationship over time.
Use Merck KGaA 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 Merck KGaA 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 Merck KGaA will appreciate offsetting losses from the drop in the long position's value.Merck KGaA Pair Trading
Merck KGaA Pair Trading Analysis
The ability to find closely correlated positions to Merck KGaA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merck KGaA 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 Merck KGaA - 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 Merck KGaA to buy it.
The correlation of Merck KGaA 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 Merck KGaA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merck KGaA 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 Merck KGaA 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 Merck KGaA position
In addition to having Merck KGaA 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?
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Additional Tools for Merck Stock Analysis
When running Merck KGaA's price analysis, check to measure Merck KGaA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck KGaA is operating at the current time. Most of Merck KGaA's value examination focuses on studying past and present price action to predict the probability of Merck KGaA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck KGaA's price. Additionally, you may evaluate how the addition of Merck KGaA to your portfolios can decrease your overall portfolio volatility.