Rent The Operating Margin vs. Return On Equity

RENT Stock  USD 8.90  0.25  2.73%   
Based on the measurements of profitability obtained from Rent The's financial statements, Rent the Runway 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 Rent The's ability to earn profits and add value for shareholders.

Rent The Operating Profit Margin

(0.0591)

Price To Sales Ratio is likely to gain to 2.53 in 2024. Days Sales Outstanding is likely to gain to 70.61 in 2024. Change To Netincome is likely to gain to about 56.5 M in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (382.6 M).
For Rent The profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rent The to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rent the Runway utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rent The's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rent the Runway over time as well as its relative position and ranking within its peers.
  

Rent The's Revenue Breakdown by Earning Segment

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Is Other Specialty Retail 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 Rent The. If investors know Rent 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 Rent The listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(22.09)
Revenue Per Share
84.047
Quarterly Revenue Growth
0.042
Return On Assets
(0.13)
Return On Equity
(7.75)
The market value of Rent the Runway is measured differently than its book value, which is the value of Rent that is recorded on the company's balance sheet. Investors also form their own opinion of Rent The's value that differs from its market value or its book value, called intrinsic value, which is Rent The'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 Rent The's market value can be influenced by many factors that don't directly affect Rent The'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 Rent The's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rent The is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rent The'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.

Rent the Runway Return On Equity vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rent The's current stock value. Our valuation model uses many indicators to compare Rent The value to that of its competitors to determine the firm's financial worth.
Rent the Runway is rated below average in operating margin category among its peers. It is rated below average in return on equity category among its peers . At this time, Rent The's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Rent The by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Rent 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.

Rent The

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.11) %
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.

Rent The

Return On Equity

 = 

Net Income

Total Equity

 = 
-7.75
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.

Rent Return On Equity Comparison

Rent The is currently under evaluation in return on equity category among its peers.

Rent The Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Rent The, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rent The will eventually generate negative long term returns. The profitability progress is the general direction of Rent The's change in net profit over the period of time. It can combine multiple indicators of Rent The, 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-402.8 M-382.6 M
Operating Income-80 M-76 M
Income Before Tax-113 M-107.3 M
Total Other Income Expense Net-33 M-31.4 M
Net Loss-113.2 M-107.5 M
Income Tax Expense200 K190 K
Net Interest Income-33.7 M-35.4 M
Net Loss-113.2 M-118.9 M
Net Loss-159.5 M-167.5 M
Non Operating Income Net Other-29.9 M-31.4 M
Change To Netincome45.7 M56.5 M
Net Loss(33.12)(2.94)
Income Quality 0.14 (4.94)
Net Income Per E B T 1.00  0.34 

Rent Profitability Driver Comparison

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

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Our tools can tell you how much better you can do entering a position in Rent The without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Companies specializing in air services and air delivery. The Air theme has 43 constituents at this time.
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Additional Tools for Rent Stock Analysis

When running Rent The's price analysis, check to measure Rent The'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 Rent The is operating at the current time. Most of Rent The's value examination focuses on studying past and present price action to predict the probability of Rent The's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rent The's price. Additionally, you may evaluate how the addition of Rent The to your portfolios can decrease your overall portfolio volatility.