SIKA AG Current Ratio vs. Profit Margin

SIKB Stock  EUR 24.60  0.80  3.36%   
Considering the key profitability indicators obtained from SIKA AG's historical financial statements, SIKA AG UNSPADR 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 SIKA AG's ability to earn profits and add value for shareholders.
For SIKA AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SIKA AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SIKA AG UNSPADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SIKA AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SIKA AG UNSPADR 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 SIKA AG's value and its price as these two are different measures arrived at by different means. Investors typically determine if SIKA AG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SIKA AG'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.

SIKA AG UNSPADR Profit Margin vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SIKA AG's current stock value. Our valuation model uses many indicators to compare SIKA AG value to that of its competitors to determine the firm's financial worth.
SIKA AG UNSPADR is currently regarded as top stock in current ratio category among its peers. It also is currently regarded as top stock in profit margin category among its peers fabricating about  0.06  of Profit Margin per Current Ratio. The ratio of Current Ratio to Profit Margin for SIKA AG UNSPADR is roughly  17.14 . 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 SIKA AG's earnings, one of the primary drivers of an investment's value.

SIKA Profit Margin vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

SIKA AG

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
1.93 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
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.

SIKA AG

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.11 %
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.

SIKA Profit Margin Comparison

SIKA AG is currently under evaluation in profit margin category among its peers.

SIKA AG Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SIKA AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SIKA AG will eventually generate negative long term returns. The profitability progress is the general direction of SIKA AG's change in net profit over the period of time. It can combine multiple indicators of SIKA AG, 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.
Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and automotive industry worldwide. The company was founded in 1910 and is headquartered in Baar, Switzerland. SIKA AG operates under Specialty Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 25274 people.

SIKA Profitability Driver Comparison

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

Use SIKA AG 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 SIKA AG 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 SIKA AG will appreciate offsetting losses from the drop in the long position's value.

SIKA AG Pair Trading

SIKA AG UNSPADR Pair Trading Analysis

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

In addition to having SIKA AG 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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ESG Investing
ESG Investing Theme
Sustainable investments that promote the conservation of the natural world, social resposibility, freindly employees policies and strong governance. The ESG Investing 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 ESG Investing Theme or any other thematic opportunities.
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Other Information on Investing in SIKA Stock

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