Rocket Internet Gross Profit vs. Return On Equity

RKET Stock  EUR 14.50  0.20  1.36%   
Based on Rocket Internet's profitability indicators, Rocket Internet SE 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 Rocket Internet's ability to earn profits and add value for shareholders.
For Rocket Internet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rocket Internet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rocket Internet SE utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rocket Internet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rocket Internet SE 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 Rocket Internet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rocket Internet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rocket Internet'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.

Rocket Internet SE Return On Equity vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Rocket Internet's current stock value. Our valuation model uses many indicators to compare Rocket Internet value to that of its competitors to determine the firm's financial worth.
Rocket Internet SE is currently regarded as top stock in gross profit category among its peers. It also is currently regarded as top stock in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Rocket Internet SE is about  279,002,079 . 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 Rocket Internet's earnings, one of the primary drivers of an investment's value.

Rocket 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.

Rocket Internet

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
67.1 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.

Rocket Internet

Return On Equity

 = 

Net Income

Total Equity

 = 
0.24
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.

Rocket Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Rocket Internet. 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 Rocket Internet 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 Rocket Internet'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 Rocket Internet 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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Use Investing Themes to Complement your Rocket Internet position

In addition to having Rocket Internet 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.

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Information Technology ETFs
Information Technology ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Information Technology ETFs theme has 51 constituents at this time.
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 Information Technology ETFs Theme or any other thematic opportunities.
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Other Information on Investing in Rocket Stock

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