Woolworths Cash And Equivalents vs. Profit Margin

WOW Stock   30.30  0.04  0.13%   
Based on Woolworths' profitability indicators, Woolworths 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 Woolworths' ability to earn profits and add value for shareholders.
 
Cash And Equivalents  
First Reported
2010-12-31
Previous Quarter
1.3 B
Current Value
1.3 B
Quarterly Volatility
308.7 M
 
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Covid
For Woolworths profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Woolworths to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Woolworths utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Woolworths's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Woolworths 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 Woolworths' value and its price as these two are different measures arrived at by different means. Investors typically determine if Woolworths is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Woolworths' 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.

Woolworths Profit Margin vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Woolworths's current stock value. Our valuation model uses many indicators to compare Woolworths value to that of its competitors to determine the firm's financial worth.
Woolworths is rated first in cash and equivalents category among its peers. It is rated first in profit margin category among its peers . The ratio of Cash And Equivalents to Profit Margin for Woolworths is about  709,375,000,000 . At this time, Woolworths' Cash And Equivalents is comparatively stable compared to the past year. 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 Woolworths' earnings, one of the primary drivers of an investment's value.

Woolworths Profit Margin vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Woolworths

Cash

 = 

Bank Deposits

+

Liquidities

 = 
1.14 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.

Woolworths

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0 %
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.

Woolworths Profit Margin Comparison

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

Woolworths Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Woolworths, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Woolworths will eventually generate negative long term returns. The profitability progress is the general direction of Woolworths' change in net profit over the period of time. It can combine multiple indicators of Woolworths, 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 Income-7.6 B-7.2 B
Operating Income1.3 B2.2 B
Income Before Tax876 M1.7 B
Total Other Income Expense Net-430 M-451.5 M
Income Tax Expense759 M745.7 M
Net Income108 M102.6 M
Net Income Applicable To Common Shares1.9 B1.9 B
Net Income From Continuing Ops117 M111.2 M
Interest Income32 M30.4 M
Net Interest Income-740 M-703 M
Change To Netincome128.7 M135.1 M

Woolworths Profitability Driver Comparison

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

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

Woolworths Pair Trading

Woolworths Pair Trading Analysis

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

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Additional Tools for Woolworths Stock Analysis

When running Woolworths' price analysis, check to measure Woolworths' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Woolworths is operating at the current time. Most of Woolworths' value examination focuses on studying past and present price action to predict the probability of Woolworths' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Woolworths' price. Additionally, you may evaluate how the addition of Woolworths to your portfolios can decrease your overall portfolio volatility.