Revolution Medicines Operating Margin vs. Total Debt
| RVMD Stock | USD 46.43 0.86 1.82% |
Revolution Medicines Operating Profit Margin |
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For Revolution Medicines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Revolution Medicines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Revolution Medicines utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Revolution Medicines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Revolution Medicines over time as well as its relative position and ranking within its peers.
Revolution |
Is Biotechnology 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 Revolution Medicines. If investors know Revolution 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 Revolution Medicines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.66) | Revenue Per Share 0.005 | Quarterly Revenue Growth (0.95) | Return On Assets (0.29) | Return On Equity (0.47) |
The market value of Revolution Medicines is measured differently than its book value, which is the value of Revolution that is recorded on the company's balance sheet. Investors also form their own opinion of Revolution Medicines' value that differs from its market value or its book value, called intrinsic value, which is Revolution Medicines' 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 Revolution Medicines' market value can be influenced by many factors that don't directly affect Revolution Medicines' 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 Revolution Medicines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Revolution Medicines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Revolution Medicines' 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.
Revolution Medicines Total Debt vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Revolution Medicines's current stock value. Our valuation model uses many indicators to compare Revolution Medicines value to that of its competitors to determine the firm's financial worth. Revolution Medicines is rated below average in operating margin category among its peers. It is rated third in total debt category among its peers . At present, Revolution Medicines' Operating Profit Margin is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Revolution Medicines 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.Revolution Total Debt 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.
Revolution Medicines |
| = | (845.95) % |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Revolution Medicines |
| = | 87.94 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Revolution Total Debt vs Competition
Revolution Medicines is rated third in total debt category among its peers. Total debt of Health Care industry is at this time estimated at about 1.48 Billion. Revolution Medicines holds roughly 87.94 Million in total debt claiming about 6% of equities under Health Care industry.
Revolution Medicines Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Revolution Medicines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Revolution Medicines will eventually generate negative long term returns. The profitability progress is the general direction of Revolution Medicines' change in net profit over the period of time. It can combine multiple indicators of Revolution Medicines, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 544 K | 571.2 K | |
| Net Interest Income | 47.2 M | 49.5 M | |
| Interest Income | 47.5 M | 49.9 M | |
| Operating Income | -487.2 M | -462.8 M | |
| Net Loss | -436.4 M | -414.5 M | |
| Income Before Tax | -439.9 M | -417.9 M | |
| Total Other Income Expense Net | 47.3 M | 49.7 M | |
| Net Loss | -223.8 M | -212.6 M | |
| Net Loss | -436.4 M | -414.5 M | |
| Income Tax Expense | -3.5 M | -3.7 M | |
| Non Operating Income Net Other | 836.1 K | 1.3 M | |
| Change To Netincome | 32.4 M | 34 M | |
| Net Loss | (3.86) | (4.05) | |
| Income Quality | 0.80 | 0.60 | |
| Net Income Per E B T | 0.99 | 0.78 |
Revolution Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Revolution Medicines. 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 Revolution Medicines 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 Revolution Medicines' important profitability drivers and their relationship over time.
Use Revolution Medicines 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 Revolution Medicines 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 Revolution Medicines will appreciate offsetting losses from the drop in the long position's value.Revolution Medicines Pair Trading
Revolution Medicines Pair Trading Analysis
The ability to find closely correlated positions to Revolution Medicines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Revolution Medicines 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 Revolution Medicines - 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 Revolution Medicines to buy it.
The correlation of Revolution Medicines 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 Revolution Medicines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Revolution Medicines 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 Revolution Medicines 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 Revolution Medicines position
In addition to having Revolution Medicines 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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Check out Your Equity Center. For information on how to trade Revolution Stock refer to our How to Trade Revolution Stock guide.You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Revolution Medicines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Revolution Medicines 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 Revolution Medicines' income statement, its balance sheet, and the statement of cash flows.