Zimmer Biomet Return On Equity vs. Total Debt
| ZIM Stock | EUR 101.45 0.10 0.1% |
For Zimmer Biomet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zimmer Biomet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zimmer Biomet Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zimmer Biomet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zimmer Biomet Holdings over time as well as its relative position and ranking within its peers.
Zimmer |
Zimmer Biomet Holdings Total Debt vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zimmer Biomet's current stock value. Our valuation model uses many indicators to compare Zimmer Biomet value to that of its competitors to determine the firm's financial worth. Zimmer Biomet Holdings is rated first in return on equity category among its peers. It is rated first in total debt category among its peers making up about 225,601,694,915 of Total Debt per Return On Equity. 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 Zimmer Biomet's earnings, one of the primary drivers of an investment's value.Zimmer Total Debt 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.
Zimmer Biomet |
| = | 0.0236 |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Zimmer Biomet |
| = | 5.32 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Zimmer Total Debt vs Competition
Zimmer Biomet Holdings is rated first in total debt category among its peers. Total debt of Medical Devices industry is at this time estimated at about 17.2 Billion. Zimmer Biomet totals roughly 5.32 Billion in total debt claiming about 31% of all equities under Medical Devices industry.
Zimmer Biomet Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zimmer Biomet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zimmer Biomet will eventually generate negative long term returns. The profitability progress is the general direction of Zimmer Biomet's change in net profit over the period of time. It can combine multiple indicators of Zimmer Biomet, 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.
Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana. ZIMMER BIOMET operates under Medical Devices classification in Germany and is traded on Frankfurt Stock Exchange. It employs 19000 people.
Zimmer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zimmer Biomet. 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 Zimmer Biomet 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 Zimmer Biomet's important profitability drivers and their relationship over time.
Use Zimmer Biomet 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 Zimmer Biomet 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 Zimmer Biomet will appreciate offsetting losses from the drop in the long position's value.Zimmer Biomet Pair Trading
Zimmer Biomet Holdings Pair Trading Analysis
The ability to find closely correlated positions to Zimmer Biomet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zimmer Biomet 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 Zimmer Biomet - 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 Zimmer Biomet Holdings to buy it.
The correlation of Zimmer Biomet 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 Zimmer Biomet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zimmer Biomet Holdings 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 Zimmer Biomet 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 Zimmer Biomet position
In addition to having Zimmer Biomet 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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Additional Information and Resources on Investing in Zimmer Stock
When determining whether Zimmer Biomet Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zimmer Biomet'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 Zimmer Biomet Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zimmer Biomet Holdings Stock:Check out Your Current Watchlist. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Zimmer Biomet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zimmer Biomet Holdings 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 Zimmer Biomet's income statement, its balance sheet, and the statement of cash flows.