Hammond Depreciation vs Net Income Analysis

HPS-A Stock  CAD 133.00  0.90  0.68%   
Hammond Power financial indicator trend analysis is much more than just examining Hammond Power Solutions latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Hammond Power Solutions is a good investment. Please check the relationship between Hammond Power Depreciation and its Net Income accounts. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hammond Power Solutions. 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.

Depreciation vs Net Income

Depreciation vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Hammond Power Solutions Depreciation account and Net Income. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Hammond Power's Depreciation and Net Income is 0.54. Overlapping area represents the amount of variation of Depreciation that can explain the historical movement of Net Income in the same time period over historical financial statements of Hammond Power Solutions, assuming nothing else is changed. The correlation between historical values of Hammond Power's Depreciation and Net 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 Depreciation of Hammond Power Solutions are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Depreciation i.e., Hammond Power's Depreciation and Net Income go up and down completely randomly.

Correlation Coefficient

0.54
Relationship DirectionPositive 
Relationship StrengthWeak

Depreciation

Depreciation indicates how much of Hammond Power Solutions value has been used up. For tax purposes Hammond Power can deduct the cost of the tangible assets it purchases as business expenses. However, Hammond Power Solutions must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken, and how long it will last. The systematic allocation of the cost of a tangible asset over its useful life.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Hammond Power Solutions financial statement analysis. It represents the amount of money remaining after all of Hammond Power Solutions operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Most indicators from Hammond Power's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Hammond Power Solutions 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 Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hammond Power Solutions. 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.
At this time, Hammond Power's Selling General Administrative is comparatively stable compared to the past year. Tax Provision is likely to gain to about 21.6 M in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.09 in 2024.
 2021 2022 2023 2024 (projected)
Total Revenue380.2M558.5M710.1M745.6M
Depreciation And Amortization7.6M11.0M10.7M5.6M

Hammond Power fundamental ratios Correlations

0.260.170.980.990.840.67-0.740.980.970.960.480.670.960.990.650.650.960.68-0.440.980.990.10.26-0.020.91
0.260.450.350.180.090.040.350.120.140.30.570.210.30.24-0.10.20.10.07-0.10.350.20.930.440.060.29
0.170.450.220.13-0.020.160.210.060.070.090.390.060.090.17-0.080.020.070.25-0.250.210.120.430.28-0.010.26
0.980.350.220.950.750.66-0.670.930.970.960.430.730.960.980.670.610.940.64-0.341.00.980.190.21-0.110.94
0.990.180.130.950.870.66-0.780.990.960.940.510.610.940.970.620.630.950.68-0.50.950.970.030.30.030.87
0.840.09-0.020.750.870.36-0.680.880.770.80.520.420.80.790.530.680.740.7-0.510.760.79-0.010.40.330.57
0.670.040.160.660.660.36-0.640.640.70.630.20.420.630.650.390.530.80.28-0.230.670.71-0.2-0.05-0.330.79
-0.740.350.21-0.67-0.78-0.68-0.64-0.81-0.81-0.75-0.1-0.5-0.75-0.74-0.54-0.43-0.82-0.450.29-0.67-0.780.50.170.21-0.65
0.980.120.060.930.990.880.64-0.810.960.930.470.640.930.960.630.660.940.68-0.490.930.97-0.040.250.030.86
0.970.140.070.970.960.770.7-0.810.960.950.320.750.950.990.70.640.980.66-0.330.970.99-0.050.07-0.170.93
0.960.30.090.960.940.80.63-0.750.930.950.380.731.00.950.680.630.920.57-0.310.960.960.140.14-0.120.87
0.480.570.390.430.510.520.2-0.10.470.320.38-0.080.380.4-0.250.220.310.3-0.70.420.370.530.810.50.32
0.670.210.060.730.610.420.42-0.50.640.750.73-0.080.730.740.740.580.680.50.180.740.730.01-0.29-0.510.77
0.960.30.090.960.940.80.63-0.750.930.951.00.380.730.950.680.630.920.57-0.310.960.960.140.14-0.120.87
0.990.240.170.980.970.790.65-0.740.960.990.950.40.740.950.680.630.960.67-0.380.980.990.070.17-0.110.92
0.65-0.1-0.080.670.620.530.39-0.540.630.70.68-0.250.740.680.680.510.660.520.130.680.69-0.15-0.13-0.150.62
0.650.20.020.610.630.680.53-0.430.660.640.630.220.580.630.630.510.640.65-0.20.660.65-0.090.05-0.040.63
0.960.10.070.940.950.740.8-0.820.940.980.920.310.680.920.960.660.640.63-0.330.950.98-0.10.06-0.190.94
0.680.070.250.640.680.70.28-0.450.680.660.570.30.50.570.670.520.650.63-0.210.660.67-0.060.250.120.61
-0.44-0.1-0.25-0.34-0.5-0.51-0.230.29-0.49-0.33-0.31-0.70.18-0.31-0.380.13-0.2-0.33-0.21-0.34-0.35-0.08-0.55-0.4-0.24
0.980.350.211.00.950.760.67-0.670.930.970.960.420.740.960.980.680.660.950.66-0.340.980.180.2-0.10.94
0.990.20.120.980.970.790.71-0.780.970.990.960.370.730.960.990.690.650.980.67-0.350.980.010.13-0.140.94
0.10.930.430.190.03-0.01-0.20.5-0.04-0.050.140.530.010.140.07-0.15-0.09-0.1-0.06-0.080.180.010.560.240.06
0.260.440.280.210.30.4-0.050.170.250.070.140.81-0.290.140.17-0.130.050.060.25-0.550.20.130.560.820.04
-0.020.06-0.01-0.110.030.33-0.330.210.03-0.17-0.120.5-0.51-0.12-0.11-0.15-0.04-0.190.12-0.4-0.1-0.140.240.82-0.31
0.910.290.260.940.870.570.79-0.650.860.930.870.320.770.870.920.620.630.940.61-0.240.940.940.060.04-0.31
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Hammond Power Account Relationship Matchups

Hammond Power fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets215.0M189.4M235.1M302.7M408.3M428.8M
Short Long Term Debt Total44.1M25.4M28.8M17.6M37.0M21.3M
Other Current Liab5.1M6.3M6.9M1.8M3.9M3.0M
Total Current Liabilities93.9M67.1M102.0M117.7M165.5M173.7M
Total Stockholder Equity109.8M113.9M126.0M176.9M230.4M241.9M
Property Plant And Equipment Net32.5M30.4M31.0M41.7M65.8M69.1M
Current Deferred Revenue137K447K5.0M10.6M5.7M6.0M
Net Debt20.7M10.6M7.9M(10.5M)(15.6M)(14.8M)
Retained Earnings85.3M95.4M106.6M146.8M203.7M213.9M
Accounts Payable52.8M41.7M66.3M92.3M126.4M132.7M
Cash23.4M14.8M20.9M28.1M52.6M55.2M
Non Current Assets Total72.4M69.1M75.4M72.6M98.9M58.7M
Non Currrent Assets Other6.9M6.9M6.1M3.1M14.7M15.5M
Cash And Short Term Investments23.4M14.8M20.9M28.1M52.6M55.2M
Net Receivables65.8M53.8M73.0M91.5M133.8M140.5M
Common Stock Shares Outstanding11.8M11.7M11.8M11.9M11.9M12.8M
Liabilities And Stockholders Equity215.0M189.4M235.1M302.7M408.3M428.8M
Non Current Liabilities Total11.3M8.3M7.1M8.1M12.5M13.1M
Inventory50.9M49.2M62.5M106.4M114.6M120.3M
Other Current Assets2.4M2.5M3.3M4.1M8.4M8.8M
Total Liab105.2M75.5M109.1M125.8M178.0M186.9M
Total Current Assets142.6M120.3M159.7M230.1M309.4M324.9M
Short Term Debt34.9M18.2M21.8M10.6M24.9M17.6M
Accumulated Other Comprehensive Income7.4M1.5M2.1M12.4M8.6M6.9M
Good Will11.3M10.9M12.2M12.0M11.7M12.7M
Intangible Assets6.3M5.9M10.5M7.7M6.6M10.0M
Other Liab2.1M1.2M1.6M2.4M2.2M2.8M
Net Tangible Assets92.1M97.1M103.3M157.2M180.8M106.4M
Other Assets8.8M8.7M8.4M11.1M12.8M13.4M
Short Long Term Debt32.7M16.1M19.3M6.2M18.5M16.5M
Property Plant Equipment32.5M30.4M31.0M41.7M37.6M30.1M
Long Term Investments12.2M13.3M13.4M13.3M13.3M0.0
Net Invested Capital142.5M130.0M145.3M183.0M248.8M178.1M
Net Working Capital48.7M53.1M57.7M112.4M144.0M78.5M

Pair Trading with Hammond Power

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

Additional Tools for Hammond Stock Analysis

When running Hammond Power's price analysis, check to measure Hammond Power's 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 Hammond Power is operating at the current time. Most of Hammond Power's value examination focuses on studying past and present price action to predict the probability of Hammond Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hammond Power's price. Additionally, you may evaluate how the addition of Hammond Power to your portfolios can decrease your overall portfolio volatility.