Zomato Profit Margin vs. Gross Profit
| ZOMATO Stock | 288.25 3.35 1.18% |
For Zomato profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zomato to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zomato Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zomato's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zomato Limited over time as well as its relative position and ranking within its peers.
Zomato |
Zomato Limited Gross Profit vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zomato's current stock value. Our valuation model uses many indicators to compare Zomato value to that of its competitors to determine the firm's financial worth. Zomato Limited is rated first in profit margin category among its peers. It is rated first in gross profit category among its peers fabricating about 433,226,495,726 of Gross Profit per Profit Margin. At present, Zomato's Gross Profit is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all model that can be used if you cannot value Zomato by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Zomato's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Zomato Gross Profit vs. Profit Margin
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.
Zomato |
| = | 0.05 % |
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.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Zomato |
| = | 20.27 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Zomato Gross Profit Comparison
Zomato is currently under evaluation in gross profit category among its peers.
Zomato Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zomato, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zomato will eventually generate negative long term returns. The profitability progress is the general direction of Zomato's change in net profit over the period of time. It can combine multiple indicators of Zomato, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 8.6 B | 8.7 B | |
| Operating Income | -3.8 B | -4 B | |
| Income Before Tax | 2.9 B | 3.1 B | |
| Total Other Income Expense Net | 6.7 B | 7.1 B | |
| Net Loss | -10.9 B | -11.4 B | |
| Net Income | 3.5 B | 3.7 B | |
| Income Tax Expense | -600 M | -570 M | |
| Net Interest Income | -720 M | -756 M | |
| Interest Income | 2.6 B | 2.3 B | |
| Net Income From Continuing Ops | 3.5 B | 3.7 B | |
| Change To Netincome | 1.3 B | 1.4 B |
Zomato Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zomato. 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 Zomato 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 Zomato's important profitability drivers and their relationship over time.
Use Zomato 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 Zomato 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 Zomato will appreciate offsetting losses from the drop in the long position's value.Zomato Pair Trading
Zomato Limited Pair Trading Analysis
The ability to find closely correlated positions to Zomato could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zomato 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 Zomato - 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 Zomato Limited to buy it.
The correlation of Zomato 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 Zomato moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zomato Limited 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 Zomato 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 Zomato position
In addition to having Zomato 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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Other Information on Investing in Zomato Stock
To fully project Zomato's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Zomato Limited 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 Zomato's income statement, its balance sheet, and the statement of cash flows.