WD 40 Return On Equity vs. Profit Margin
| WD1 Stock | EUR 230.00 6.00 2.68% |
For WD 40 profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WD 40 to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WD 40 Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WD 40's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WD 40 Company over time as well as its relative position and ranking within its peers.
WD1 |
WD 40 Company Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining WD 40's current stock value. Our valuation model uses many indicators to compare WD 40 value to that of its competitors to determine the firm's financial worth. WD 40 Company is rated first in return on equity category among its peers. It is rated second in profit margin category among its peers fabricating about 0.38 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for WD 40 Company is roughly 2.61 . 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 WD 40's earnings, one of the primary drivers of an investment's value.WD1 Profit 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.
WD 40 |
| = | 0.32 |
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.
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.
WD 40 |
| = | 0.12 % |
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.
WD1 Profit Margin Comparison
WD 40 is currently under evaluation in profit margin category among its peers.
WD 40 Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in WD 40, profitability is also one of the essential criteria for including it into their portfolios because, without profit, WD 40 will eventually generate negative long term returns. The profitability progress is the general direction of WD 40's change in net profit over the period of time. It can combine multiple indicators of WD 40, 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.
WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. WD-40 Company was founded in 1953 and is headquartered in San Diego, California. WD 40 operates under Specialty Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 480 people.
WD1 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on WD 40. 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 WD 40 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 WD 40's important profitability drivers and their relationship over time.
Use WD 40 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 WD 40 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 WD 40 will appreciate offsetting losses from the drop in the long position's value.WD 40 Pair Trading
WD 40 Company Pair Trading Analysis
The ability to find closely correlated positions to WD 40 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WD 40 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 WD 40 - 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 WD 40 Company to buy it.
The correlation of WD 40 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 WD 40 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WD 40 Company 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 WD 40 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 WD 40 position
In addition to having WD 40 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 Thematic Idea Now
Construction
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction 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 Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in WD1 Stock
When determining whether WD 40 Company offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of WD 40'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 Wd 40 Company Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wd 40 Company Stock:Check out Your Current Watchlist. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project WD 40's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of WD 40 Company 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 WD 40's income statement, its balance sheet, and the statement of cash flows.