Roche Holding Profit Margin vs. Cash And Equivalents

RHHVF Stock  USD 287.59  0.89  0.31%   
Considering the key profitability indicators obtained from Roche Holding's historical financial statements, Roche Holding AG 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 Roche Holding's ability to earn profits and add value for shareholders.
For Roche Holding profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Roche Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Roche Holding AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Roche Holding's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Roche Holding AG over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Roche Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Roche Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Roche Holding'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.

Roche Holding AG Cash And Equivalents vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Roche Holding's current stock value. Our valuation model uses many indicators to compare Roche Holding value to that of its competitors to determine the firm's financial worth.
Roche Holding AG is currently regarded as top stock in profit margin category among its peers. It is rated below average in cash and equivalents category among its peers creating about  36,417,112,299  of Cash And Equivalents per Profit Margin. 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 Roche Holding's earnings, one of the primary drivers of an investment's value.

Roche Cash And Equivalents vs. Profit Margin

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.

Roche Holding

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.19 %
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Roche Holding

Cash

 = 

Bank Deposits

+

Liquidities

 = 
6.81 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Roche Cash And Equivalents Comparison

Roche Holding is currently under evaluation in cash and equivalents category among its peers.

Roche Holding Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Roche Holding, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Roche Holding will eventually generate negative long term returns. The profitability progress is the general direction of Roche Holding's change in net profit over the period of time. It can combine multiple indicators of Roche Holding, 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.
Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company was founded in 1896 and is headquartered in Basel, Switzerland. Roche Hld operates under Drug ManufacturersGeneral classification in the United States and is traded on OTC Exchange. It employs 100920 people.

Roche Profitability Driver Comparison

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

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

Roche Holding Pair Trading

Roche Holding AG Pair Trading Analysis

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

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Other Information on Investing in Roche OTC Stock

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