Elanco Gross Profit vs Operating Income Analysis
ELAN Stock | USD 13.13 0.26 1.94% |
Elanco Animal financial indicator trend analysis is much more than just examining Elanco Animal Health latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Elanco Animal Health is a good investment. Please check the relationship between Elanco Animal Gross Profit and its Operating Income accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Elanco Animal Health. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Gross Profit vs Operating Income
Gross Profit vs Operating Income Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Elanco Animal Health Gross Profit account and Operating Income. At this time, the significance of the direction appears to have strong relationship.
The correlation between Elanco Animal's Gross Profit and Operating Income is 0.68. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Operating Income in the same time period over historical financial statements of Elanco Animal Health, assuming nothing else is changed. The correlation between historical values of Elanco Animal's Gross Profit and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Gross Profit of Elanco Animal Health are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Gross Profit i.e., Elanco Animal's Gross Profit and Operating Income go up and down completely randomly.
Correlation Coefficient | 0.68 |
Relationship Direction | Positive |
Relationship Strength | Significant |
Gross Profit
Gross profit is a required income statement account that reflects total revenue of Elanco Animal Health minus its cost of goods sold. It is profit before Elanco Animal operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.Operating Income
Operating Income is the amount of profit realized from Elanco Animal Health operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Elanco Animal Health is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most indicators from Elanco Animal's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Elanco Animal Health current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Elanco Animal Health. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. Issuance Of Capital Stock is expected to grow at the current pace this year, while Tax Provision is likely to drop (13.7 M).
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 2.6B | 2.5B | 1.9B | 2.0B | Total Revenue | 4.8B | 4.4B | 4.4B | 3.9B |
Elanco Animal fundamental ratios Correlations
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Elanco Animal Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Elanco Animal fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Common Stock Shares Outstanding | 370.3M | 441.4M | 487.2M | 488.3M | 492.3M | 447.6M | |
Total Assets | 9.0B | 17.7B | 16.5B | 15.5B | 14.4B | 13.6B | |
Other Current Liab | 455.4M | 983.8M | 903M | 924M | 933M | 740.8M | |
Total Current Liabilities | 818.5M | 2.1B | 1.6B | 1.7B | 1.2B | 1.3B | |
Total Stockholder Equity | 5.5B | 8.5B | 7.5B | 7.3B | 6.2B | 7.6B | |
Other Liab | 228.2M | 1.3B | 1.2B | 941M | 1.1B | 780.6M | |
Net Tangible Assets | 74.5M | (4.1B) | (4.3B) | (3.5B) | (3.2B) | (3.0B) | |
Property Plant And Equipment Net | 955.3M | 1.3B | 1.1B | 999M | 1.0B | 1.1B | |
Net Debt | 2.0B | 5.6B | 5.7B | 5.5B | 5.4B | 3.5B | |
Retained Earnings | 84.3M | (477.2M) | (949M) | (1.1B) | (2.3B) | (2.2B) | |
Accounts Payable | 222.6M | 501M | 416M | 390M | 270M | 335.1M | |
Cash | 334M | 494.7M | 638M | 345M | 352M | 442.8M | |
Non Current Assets Total | 6.6B | 14.3B | 13.2B | 12.2B | 11.0B | 10.5B | |
Non Currrent Assets Other | 185M | 347.8M | 387M | 378M | 315M | 297.3M | |
Other Assets | 78.9M | 127.3M | 183M | 193M | 173.7M | 123.4M | |
Cash And Short Term Investments | 334M | 494.7M | 638M | 345M | 352M | 442.8M | |
Net Receivables | 889.9M | 1.1B | 1.0B | 1.0B | 1.0B | 955.4M | |
Good Will | 3.0B | 6.2B | 6.2B | 6.0B | 5.1B | 4.8B | |
Liabilities And Stockholders Equity | 9.0B | 17.7B | 16.5B | 15.5B | 14.4B | 13.6B | |
Non Current Liabilities Total | 2.6B | 7.1B | 7.3B | 6.5B | 6.9B | 4.7B | |
Inventory | 1.1B | 1.6B | 1.4B | 1.5B | 1.7B | 1.4B | |
Other Current Assets | 87.4M | 267M | 325M | 394M | 310M | 249.7M | |
Other Stockholder Equity | 5.6B | 8.7B | 8.7B | 8.7B | 8.8B | 8.4B | |
Total Liab | 3.4B | 9.2B | 8.9B | 8.2B | 8.1B | 6.0B | |
Property Plant And Equipment Gross | 955.3M | 1.3B | 2.1B | 1.7B | 1.8B | 1.4B | |
Total Current Assets | 2.4B | 3.4B | 3.3B | 3.3B | 3.4B | 3.1B | |
Accumulated Other Comprehensive Income | (173.7M) | 303M | (209M) | (392M) | (266M) | (279.3M) | |
Non Current Liabilities Other | 106.6M | 322.1M | 261M | 229M | 411M | 232.2M | |
Intangible Assets | 2.5B | 6.4B | 5.6B | 4.8B | 4.5B | 4.3B | |
Property Plant Equipment | 1.0B | 1.3B | 1.2B | 999M | 1.1B | 1.1B | |
Net Invested Capital | 7.9B | 14.6B | 13.9B | 13.1B | 12.0B | 12.1B | |
Net Working Capital | 1.6B | 1.3B | 1.6B | 1.6B | 2.2B | 1.8B | |
Short Long Term Debt Total | 2.4B | 6.1B | 6.3B | 5.8B | 5.8B | 5.3B | |
Current Deferred Revenue | 116M | 148.6M | 185M | 524M | 602.6M | 632.7M | |
Long Term Debt | 2.3B | 5.6B | 6.0B | 5.4B | 5.7B | 5.1B | |
Retained Earnings Total Equity | 84.3M | (477.2M) | (949M) | (1.1B) | (951.3M) | (903.7M) | |
Capital Surpluse | 5.6B | 8.7B | 8.7B | 8.7B | 10.0B | 8.2B | |
Short Long Term Debt | 24.5M | 554.5M | 294M | 388M | 38M | 36.1M | |
Short Term Debt | 24.5M | 591.5M | 328M | 388M | 38M | 36.1M |
Pair Trading with Elanco Animal
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 Elanco Animal 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 Elanco Animal will appreciate offsetting losses from the drop in the long position's value.Moving together with Elanco Stock
Moving against Elanco Stock
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The ability to find closely correlated positions to Elanco Animal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Elanco Animal 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 Elanco Animal - 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 Elanco Animal Health to buy it.
The correlation of Elanco Animal 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 Elanco Animal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Elanco Animal Health 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 Elanco Animal 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.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Elanco Animal Health. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Elanco Animal. If investors know Elanco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Elanco Animal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.71) | Earnings Share 0.41 | Revenue Per Share 9.023 | Quarterly Revenue Growth (0.04) | Return On Assets 0.0118 |
The market value of Elanco Animal Health is measured differently than its book value, which is the value of Elanco that is recorded on the company's balance sheet. Investors also form their own opinion of Elanco Animal's value that differs from its market value or its book value, called intrinsic value, which is Elanco Animal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Elanco Animal's market value can be influenced by many factors that don't directly affect Elanco Animal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Elanco Animal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Elanco Animal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Elanco Animal's 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.