ResMed Return On Equity vs. EBITDA
| RME Stock | EUR 226.10 3.90 1.76% |
For ResMed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ResMed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ResMed Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ResMed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ResMed Inc over time as well as its relative position and ranking within its peers.
ResMed |
ResMed Inc EBITDA vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ResMed's current stock value. Our valuation model uses many indicators to compare ResMed value to that of its competitors to determine the firm's financial worth. ResMed Inc is currently regarded as top stock in return on equity category among its peers. It is rated third in ebitda category among its peers totaling about 5,077,070,578 of EBITDA per Return On Equity. 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 ResMed's earnings, one of the primary drivers of an investment's value.ResMed EBITDA vs. Return On Equity
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.
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| = | 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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
ResMed |
| = | 1.19 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
ResMed EBITDA Comparison
ResMed is currently under evaluation in ebitda category among its peers.
ResMed Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ResMed, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ResMed will eventually generate negative long term returns. The profitability progress is the general direction of ResMed's change in net profit over the period of time. It can combine multiple indicators of ResMed, 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.
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California. RESMED INC is traded on Frankfurt Stock Exchange in Germany.
ResMed Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ResMed. 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 ResMed 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 ResMed's important profitability drivers and their relationship over time.
Use ResMed 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 ResMed 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 ResMed will appreciate offsetting losses from the drop in the long position's value.ResMed Pair Trading
ResMed Inc Pair Trading Analysis
The ability to find closely correlated positions to ResMed could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ResMed 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 ResMed - 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 ResMed Inc to buy it.
The correlation of ResMed 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 ResMed moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ResMed Inc 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 ResMed 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 ResMed position
In addition to having ResMed 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 Information and Resources on Investing in ResMed Stock
When determining whether ResMed Inc is a strong investment it is important to analyze ResMed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ResMed's future performance. For an informed investment choice regarding ResMed Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project ResMed's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ResMed Inc 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 ResMed's income statement, its balance sheet, and the statement of cash flows.