VONOVIA SE Debt To Equity vs. Return On Equity
| VNAA Stock | EUR 14.10 0.10 0.70% |
For VONOVIA SE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VONOVIA SE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VONOVIA SE ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VONOVIA SE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VONOVIA SE ADR over time as well as its relative position and ranking within its peers.
VONOVIA |
VONOVIA SE ADR Return On Equity vs. Debt To Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining VONOVIA SE's current stock value. Our valuation model uses many indicators to compare VONOVIA SE value to that of its competitors to determine the firm's financial worth. VONOVIA SE ADR is rated below average in debt to equity category among its peers. It is rated below average in return on equity category among its peers reporting about 0.03 of Return On Equity per Debt To Equity. The ratio of Debt To Equity to Return On Equity for VONOVIA SE ADR is roughly 31.24 . 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 VONOVIA SE's earnings, one of the primary drivers of an investment's value.VONOVIA Return On Equity vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
VONOVIA SE |
| = | 1.11 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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.
VONOVIA SE |
| = | 0.0355 |
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.
VONOVIA Return On Equity Comparison
VONOVIA SE is rated third in return on equity category among its peers.
VONOVIA SE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in VONOVIA SE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VONOVIA SE will eventually generate negative long term returns. The profitability progress is the general direction of VONOVIA SE's change in net profit over the period of time. It can combine multiple indicators of VONOVIA SE, 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.
Vonovia SE operates as an integrated residential real estate company in Europe. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany. VONOVIA SE operates under Real Estate Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 10793 people.
VONOVIA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on VONOVIA SE. 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 VONOVIA SE 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 VONOVIA SE's important profitability drivers and their relationship over time.
Use VONOVIA SE 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 VONOVIA SE 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 VONOVIA SE will appreciate offsetting losses from the drop in the long position's value.VONOVIA SE Pair Trading
VONOVIA SE ADR Pair Trading Analysis
The ability to find closely correlated positions to VONOVIA SE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VONOVIA SE 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 VONOVIA SE - 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 VONOVIA SE ADR to buy it.
The correlation of VONOVIA SE 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 VONOVIA SE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VONOVIA SE ADR 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 VONOVIA SE 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 VONOVIA SE position
In addition to having VONOVIA SE 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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Companies that are related to providing gambling services across multiple geographical areas by investing, exploring, or producing software, hardware, and related infrastructure for running gambling operations or trading speculative assets. The Gambling theme has 38 constituents at this time.
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Other Information on Investing in VONOVIA Stock
To fully project VONOVIA SE's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VONOVIA SE ADR 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 VONOVIA SE's income statement, its balance sheet, and the statement of cash flows.