Invesco Advantage Return On Asset vs. Return On Equity

VKI Stock  USD 9.23  0.02  0.22%   
Based on the measurements of profitability obtained from Invesco Advantage's financial statements, Invesco Advantage MIT may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Invesco Advantage's ability to earn profits and add value for shareholders. The current Price To Sales Ratio is estimated to decrease to 10.97. The current Days Sales Outstanding is estimated to decrease to 93.96. As of now, Invesco Advantage's Net Income is decreasing as compared to previous years. The Invesco Advantage's current Net Interest Income is estimated to increase to about 23.3 M, while Accumulated Other Comprehensive Income is projected to decrease to under 859.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.821.4194
Way Down
Pretty Stable
Pretax Profit Margin0.821.4194
Way Down
Pretty Stable
For Invesco Advantage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Invesco Advantage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Invesco Advantage MIT utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Invesco Advantage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Invesco Advantage MIT over time as well as its relative position and ranking within its peers.
  
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Is Asset Management & Custody Banks 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 Invesco Advantage. If investors know Invesco 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 Invesco Advantage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.25)
Dividend Share
0.384
Earnings Share
0.86
Revenue Per Share
0.721
Quarterly Revenue Growth
0.013
The market value of Invesco Advantage MIT is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco Advantage's value that differs from its market value or its book value, called intrinsic value, which is Invesco Advantage's 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 Invesco Advantage's market value can be influenced by many factors that don't directly affect Invesco Advantage's 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 Invesco Advantage's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco Advantage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Advantage'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.

Invesco Advantage MIT Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Invesco Advantage's current stock value. Our valuation model uses many indicators to compare Invesco Advantage value to that of its competitors to determine the firm's financial worth.
Invesco Advantage MIT is rated below average in return on asset category among its peers. It is rated below average in return on equity category among its peers reporting about  3.22  of Return On Equity per Return On Asset. As of now, Invesco Advantage's Return On Equity is decreasing as compared to previous years. 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 Invesco Advantage's earnings, one of the primary drivers of an investment's value.

Invesco Return On Equity vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Invesco Advantage

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0246
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.

Invesco Advantage

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0793
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.

Invesco Return On Equity Comparison

Invesco Advantage is currently under evaluation in return on equity category among its peers.

Invesco Advantage Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Invesco Advantage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Invesco Advantage will eventually generate negative long term returns. The profitability progress is the general direction of Invesco Advantage's change in net profit over the period of time. It can combine multiple indicators of Invesco Advantage, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income995.2 M859.8 M
Operating Income-35.1 M-33.3 M
Net Income From Continuing Ops34.1 M35.8 M
Income Before Tax34.1 M25.1 M
Total Other Income Expense Net69.2 M72.6 M
Net Income Applicable To Common Shares73.8 M77.5 M
Net Income34.1 M35.8 M
Income Tax Expense-167.9 K-176.3 K
Interest Income32 M27.4 M
Net Interest Income20.5 M23.3 M
Change To Netincome-57.2 M-54.3 M
Net Income Per Share 0.77  0.72 
Income Quality 0.47  0.72 

Invesco Profitability Driver Comparison

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

Use Invesco Advantage 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 Invesco Advantage 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 Invesco Advantage will appreciate offsetting losses from the drop in the long position's value.

Invesco Advantage Pair Trading

Invesco Advantage MIT Pair Trading Analysis

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

In addition to having Invesco Advantage 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?

Run Soft Drinks Thematic Idea Now

Soft Drinks
Soft Drinks Theme
Entities manufacturing and distributing non alcoholic beverages across different markets. The Soft Drinks theme has 44 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 Soft Drinks Theme or any other thematic opportunities.
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When determining whether Invesco Advantage MIT offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Invesco Advantage's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Invesco Advantage Mit Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Invesco Advantage Mit Stock:
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You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
To fully project Invesco Advantage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Invesco Advantage MIT 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 Invesco Advantage's income statement, its balance sheet, and the statement of cash flows.
Potential Invesco Advantage investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Invesco Advantage investors may work on each financial statement separately, they are all related. The changes in Invesco Advantage's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Invesco Advantage'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.