VOLKSWAGEN ADR Return On Equity vs. Operating Margin
| VOWA Stock | 8.90 0.10 1.11% |
For VOLKSWAGEN ADR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VOLKSWAGEN ADR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VOLKSWAGEN ADR 110ON utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VOLKSWAGEN ADR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VOLKSWAGEN ADR 110ON over time as well as its relative position and ranking within its peers.
VOLKSWAGEN |
VOLKSWAGEN ADR 110ON Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining VOLKSWAGEN ADR's current stock value. Our valuation model uses many indicators to compare VOLKSWAGEN ADR value to that of its competitors to determine the firm's financial worth. VOLKSWAGEN ADR 110ON is rated fifth in return on equity category among its peers. It is rated fourth in operating margin category among its peers reporting about 0.87 of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for VOLKSWAGEN ADR 110ON is roughly 1.15 . 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 VOLKSWAGEN ADR's earnings, one of the primary drivers of an investment's value.VOLKSWAGEN Operating Margin 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.
VOLKSWAGEN ADR |
| = | 0.1 |
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.
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.
VOLKSWAGEN ADR |
| = | 0.09 % |
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.
VOLKSWAGEN Operating Margin Comparison
VOLKSWAGEN ADR is rated second in operating margin category among its peers.
VOLKSWAGEN Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on VOLKSWAGEN ADR. 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 VOLKSWAGEN ADR 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 VOLKSWAGEN ADR's important profitability drivers and their relationship over time.
Use VOLKSWAGEN ADR 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 VOLKSWAGEN ADR 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 VOLKSWAGEN ADR will appreciate offsetting losses from the drop in the long position's value.VOLKSWAGEN ADR Pair Trading
VOLKSWAGEN ADR 110ON Pair Trading Analysis
The ability to find closely correlated positions to VOLKSWAGEN ADR could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace VOLKSWAGEN ADR 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 VOLKSWAGEN ADR - 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 VOLKSWAGEN ADR 110ON to buy it.
The correlation of VOLKSWAGEN ADR 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 VOLKSWAGEN ADR moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VOLKSWAGEN ADR 110ON 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 VOLKSWAGEN ADR 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 VOLKSWAGEN ADR position
In addition to having VOLKSWAGEN ADR 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 Construction Materials Thematic Idea Now
Construction Materials
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction Materials theme has 61 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 Construction Materials Theme or any other thematic opportunities.
| View All Next | Launch |
Other Information on Investing in VOLKSWAGEN Stock
To fully project VOLKSWAGEN ADR's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of VOLKSWAGEN ADR 110ON 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 VOLKSWAGEN ADR's income statement, its balance sheet, and the statement of cash flows.