Smith Net Invested Capital vs Net Working Capital Analysis

SNN Stock

USD 25.71 0.41 1.62%

Smith Nephew financial indicator trend analysis is much more than just breaking down Smith Nephew SNATS prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Smith Nephew SNATS is a good investment. Please check the relationship between Smith Nephew Net Invested Capital and its Net Working Capital accounts. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Smith Nephew SNATS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Net Invested Capital vs Net Working Capital

Net Invested Capital vs Net Working Capital Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Smith Nephew SNATS Net Invested Capital account and Net Working Capital. At this time, the significance of the direction appears to have almost identical trend.

The correlation between Smith Nephew's Net Invested Capital and Net Working Capital is 0.92. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Net Working Capital in the same time period over historical financial statements of Smith Nephew SNATS, assuming nothing else is changed. The correlation between historical values of Smith Nephew's Net Invested Capital and Net Working Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of Smith Nephew SNATS are associated (or correlated) with its Net Working Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Working Capital has no effect on the direction of Net Invested Capital i.e., Smith Nephew's Net Invested Capital and Net Working Capital go up and down completely randomly.

Correlation Coefficient

0.92

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Net Invested Capital

The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.

Net Working Capital

Most indicators from Smith Nephew's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Smith Nephew SNATS 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Smith Nephew SNATS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

At this time, Smith Nephew's Enterprise Value Over EBITDA is very stable compared to the past year. As of the 29th of November 2024, Enterprise Value Multiple is likely to grow to 17.12, while Selling General Administrative is likely to drop about 364.8 M.

	2021	2023	2024 (projected)
Interest Expense	80M	139M	146.0M
Depreciation And Amortization	563M	527M	553.4M

Interest Expense Depreciation And Amortization

Smith Nephew fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Other Assets	Cash And Short Term Investments	Common Stock Shares Outstanding	Short Term Investments	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Common Stock	Intangible Assets
Total Assets		0.91	0.27	0.92	0.96	0.87	-0.23	0.86	0.95	0.95	0.55	0.98	-0.25	0.7	0.53	-0.04	-0.79	0.92	0.91	-0.17	0.34	0.97	0.97	0.56	0.65	0.66
Short Long Term Debt Total	0.91		0.0	0.86	0.76	0.76	-0.2	0.92	0.74	0.76	0.66	0.86	-0.4	0.58	0.65	-0.26	-0.84	0.98	0.87	-0.28	0.48	0.98	0.93	0.69	0.34	0.46
Other Current Liab	0.27	0.0		0.19	0.37	0.24	-0.02	0.13	0.39	0.4	-0.25	0.37	-0.24	-0.13	-0.27	0.56	-0.24	0.01	0.13	-0.24	0.04	0.16	0.09	-0.3	0.37	0.56
Total Current Liabilities	0.92	0.86	0.19		0.88	0.73	0.02	0.88	0.87	0.9	0.4	0.89	-0.11	0.73	0.39	-0.12	-0.75	0.83	0.96	-0.08	0.39	0.89	0.93	0.79	0.64	0.4
Total Stockholder Equity	0.96	0.76	0.37	0.88		0.84	-0.19	0.74	0.99	0.98	0.42	0.96	-0.09	0.75	0.39	0.08	-0.68	0.79	0.86	-0.06	0.21	0.86	0.91	0.45	0.79	0.69
Property Plant And Equipment Net	0.87	0.76	0.24	0.73	0.84		-0.42	0.67	0.84	0.81	0.57	0.83	-0.36	0.62	0.55	-0.13	-0.68	0.77	0.72	-0.15	0.28	0.83	0.84	0.35	0.56	0.67
Current Deferred Revenue	-0.23	-0.2	-0.02	0.02	-0.19	-0.42		0.1	-0.18	-0.11	-0.7	-0.14	0.51	-0.12	-0.69	0.05	0.16	-0.23	0.11	0.1	-0.06	-0.24	-0.25	0.2	0.06	-0.35
Net Debt	0.86	0.92	0.13	0.88	0.74	0.67	0.1		0.73	0.8	0.32	0.86	-0.27	0.48	0.31	-0.13	-0.85	0.91	0.93	-0.33	0.49	0.91	0.83	0.66	0.4	0.46
Retained Earnings	0.95	0.74	0.39	0.87	0.99	0.84	-0.18	0.73		0.97	0.4	0.95	-0.11	0.74	0.38	0.05	-0.65	0.77	0.86	0.01	0.16	0.85	0.91	0.45	0.81	0.67
Accounts Payable	0.95	0.76	0.4	0.9	0.98	0.81	-0.11	0.8	0.97		0.31	0.97	-0.07	0.67	0.29	0.15	-0.72	0.8	0.89	-0.13	0.28	0.86	0.88	0.46	0.79	0.7
Cash	0.55	0.66	-0.25	0.4	0.42	0.57	-0.7	0.32	0.4	0.31		0.42	-0.45	0.5	1.0	-0.38	-0.42	0.63	0.32	-0.06	0.22	0.63	0.66	0.4	0.06	0.25
Non Current Assets Total	0.98	0.86	0.37	0.89	0.96	0.83	-0.14	0.86	0.95	0.97	0.42		-0.19	0.63	0.4	0.08	-0.78	0.89	0.9	-0.21	0.32	0.94	0.92	0.48	0.69	0.74
Non Currrent Assets Other	-0.25	-0.4	-0.24	-0.11	-0.09	-0.36	0.51	-0.27	-0.11	-0.07	-0.45	-0.19		0.17	-0.46	0.22	0.45	-0.33	-0.1	0.33	-0.35	-0.38	-0.24	0.02	0.33	-0.18
Other Assets	0.7	0.58	-0.13	0.73	0.75	0.62	-0.12	0.48	0.74	0.67	0.5	0.63	0.17		0.49	-0.39	-0.4	0.56	0.72	0.28	-0.03	0.61	0.78	0.63	0.58	0.17
Cash And Short Term Investments	0.53	0.65	-0.27	0.39	0.39	0.55	-0.69	0.31	0.38	0.29	1.0	0.4	-0.46	0.49		-0.39	-0.42	0.62	0.31	-0.06	0.23	0.62	0.65	0.4	0.03	0.23
Common Stock Shares Outstanding	-0.04	-0.26	0.56	-0.12	0.08	-0.13	0.05	-0.13	0.05	0.15	-0.38	0.08	0.22	-0.39	-0.39		-0.01	-0.17	-0.16	-0.4	0.12	-0.14	-0.19	-0.46	0.28	0.46
Short Term Investments	-0.79	-0.84	-0.24	-0.75	-0.68	-0.68	0.16	-0.85	-0.65	-0.72	-0.42	-0.78	0.45	-0.4	-0.42	-0.01		-0.8	-0.78	0.63	-0.65	-0.84	-0.76	-0.48	-0.18	-0.45
Non Current Liabilities Total	0.92	0.98	0.01	0.83	0.79	0.77	-0.23	0.91	0.77	0.8	0.63	0.89	-0.33	0.56	0.62	-0.17	-0.8		0.85	-0.27	0.42	0.97	0.91	0.59	0.42	0.59
Inventory	0.91	0.87	0.13	0.96	0.86	0.72	0.11	0.93	0.86	0.89	0.32	0.9	-0.1	0.72	0.31	-0.16	-0.78	0.85		-0.13	0.38	0.89	0.91	0.73	0.59	0.4
Other Current Assets	-0.17	-0.28	-0.24	-0.08	-0.06	-0.15	0.1	-0.33	0.01	-0.13	-0.06	-0.21	0.33	0.28	-0.06	-0.4	0.63	-0.27	-0.13		-0.7	-0.26	-0.08	0.12	0.32	-0.34
Other Stockholder Equity	0.34	0.48	0.04	0.39	0.21	0.28	-0.06	0.49	0.16	0.28	0.22	0.32	-0.35	-0.03	0.23	0.12	-0.65	0.42	0.38	-0.7		0.44	0.35	0.34	-0.11	0.1
Total Liab	0.97	0.98	0.16	0.89	0.86	0.83	-0.24	0.91	0.85	0.86	0.63	0.94	-0.38	0.61	0.62	-0.14	-0.84	0.97	0.89	-0.26	0.44		0.96	0.61	0.49	0.6
Total Current Assets	0.97	0.93	0.09	0.93	0.91	0.84	-0.25	0.83	0.91	0.88	0.66	0.92	-0.24	0.78	0.65	-0.19	-0.76	0.91	0.91	-0.08	0.35	0.96		0.69	0.59	0.5
Short Term Debt	0.56	0.69	-0.3	0.79	0.45	0.35	0.2	0.66	0.45	0.46	0.4	0.48	0.02	0.63	0.4	-0.46	-0.48	0.59	0.73	0.12	0.34	0.61	0.69		0.28	-0.16
Common Stock	0.65	0.34	0.37	0.64	0.79	0.56	0.06	0.4	0.81	0.79	0.06	0.69	0.33	0.58	0.03	0.28	-0.18	0.42	0.59	0.32	-0.11	0.49	0.59	0.28		0.58
Intangible Assets	0.66	0.46	0.56	0.4	0.69	0.67	-0.35	0.46	0.67	0.7	0.25	0.74	-0.18	0.17	0.23	0.46	-0.45	0.59	0.4	-0.34	0.1	0.6	0.5	-0.16	0.58

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Smith Nephew Account Relationship Matchups

Smith Nephew fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	9.3B	11.0B	10.9B	10.0B	10.0B	10.5B
Short Long Term Debt Total	2.0B	3.7B	3.3B	2.9B	3.1B	3.2B
Other Current Liab	623M	196M	319M	263M	272M	322.4M
Total Current Liabilities	1.6B	1.7B	2.1B	1.7B	2.3B	2.4B
Total Stockholder Equity	5.1B	5.3B	5.6B	5.3B	5.2B	5.5B
Property Plant And Equipment Net	1.3B	1.4B	1.5B	1.5B	1.5B	746.7M
Current Deferred Revenue	(72M)	(337M)	(491M)	(160M)	218M	228.9M
Net Debt	1.8B	1.9B	2.0B	2.5B	2.8B	2.9B
Retained Earnings	4.8B	5.0B	5.2B	5.0B	4.9B	5.2B
Accounts Payable	941M	891M	1.0B	1.0B	1.0B	1.1B
Cash	277M	1.8B	1.3B	350M	302M	278.3M
Non Current Assets Total	5.8B	6.0B	6.1B	5.8B	6.0B	6.3B
Non Currrent Assets Other	(150M)	(202M)	(201M)	(177M)	87M	91.4M
Other Assets	291M	368M	398M	330M	379.5M	398.5M
Cash And Short Term Investments	277M	1.8B	1.3B	350M	302M	293.6M
Liabilities And Stockholders Equity	9.3B	11.0B	10.9B	10.0B	10.0B	10.5B
Non Current Liabilities Total	1.9B	3.2B	2.7B	2.6B	2.5B	2.6B
Inventory	1.6B	1.7B	1.8B	2.2B	2.4B	2.5B
Other Current Assets	246M	300M	319M	274M	315.1M	440.7M
Other Stockholder Equity	115M	455M	494M	497M	521M	547.1M
Total Liab	4.2B	5.7B	5.4B	4.7B	4.8B	5.0B
Total Current Assets	3.2B	4.7B	4.4B	3.9B	4.0B	4.2B
Accumulated Other Comprehensive Income	(306M)	(311M)	(328M)	(439M)	(385M)	(404.3M)
Short Term Debt	72M	395M	547M	209M	765M	803.3M
Intangible Assets	1.6B	1.5B	1.4B	1.2B	1.1B	817.0M
Other Liab	619M	692M	373M	280M	322M	358.7M
Long Term Debt	1.8B	3.2B	2.7B	2.6B	2.2B	1.2B
Good Will	2.8B	2.9B	3.0B	3.0B	3.0B	1.7B
Property Plant Equipment	1.3B	1.4B	1.5B	1.5B	1.7B	929.0M
Net Receivables	1.1B	911M	971M	1.0B	1.1B	885.0M
Property Plant And Equipment Gross	1.3B	1.4B	4.0B	4.0B	4.2B	4.5B
Treasury Stock	(214M)	(189M)	(157M)	(120M)	(138M)	(144.9M)
Net Tangible Assets	785M	865M	1.2B	992M	1.1B	871.3M

Pair Trading with Smith Nephew

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 Smith Nephew 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 Smith Nephew will appreciate offsetting losses from the drop in the long position's value.

Moving together with Smith Stock

0.68

Cigna Corp

Pair Corr

Moving against Smith Stock

0.94	MD	Mednax Inc	Pair Corr
0.85	ELMD	Electromed	Pair Corr
0.81	VREX	Varex Imaging Corp	Pair Corr
0.79	OM	Outset Medical	Pair Corr
0.78	DOCS	Doximity Sell-off Trend	Pair Corr

The ability to find closely correlated positions to Smith Nephew could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Smith Nephew 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 Smith Nephew - 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 Smith Nephew SNATS to buy it.

The correlation of Smith Nephew 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 Smith Nephew moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Smith Nephew SNATS 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 Smith Nephew 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 Correlation Correlation Matching

When determining whether Smith Nephew SNATS offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Smith Nephew'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 Smith Nephew Snats Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Smith Nephew Snats Stock:

How To Invest In Smith

Details

Is Smith Stock a good investment?

Details

What is Smith Nephew's Net Worth?

Details

Largest Health Care Equipment & Supplies Companies

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Largest Health Care Equipment & Services Companies

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Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Smith Nephew SNATS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Is Health Care Equipment & Supplies 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 Smith Nephew. If investors know Smith 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 Smith Nephew 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

0.244

Dividend Share

0.375

Earnings Share

0.7

Revenue Per Share

2.5904

Quarterly Revenue Growth

0.034

The market value of Smith Nephew SNATS is measured differently than its book value, which is the value of Smith that is recorded on the company's balance sheet. Investors also form their own opinion of Smith Nephew's value that differs from its market value or its book value, called intrinsic value, which is Smith Nephew'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 Smith Nephew's market value can be influenced by many factors that don't directly affect Smith Nephew'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 Smith Nephew's value and its price as these two are different measures arrived at by different means. Investors typically determine if Smith Nephew is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Smith Nephew'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.

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Smith Net Invested Capital vs Net Working Capital Analysis

Net Invested Capital vs Net Working Capital

Net Invested Capital vs Net Working Capital Correlation Analysis

Correlation Coefficient

Net Invested Capital

Net Working Capital

Smith Nephew fundamental ratios Correlations

Smith Nephew Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Smith Nephew fundamental ratios Accounts

Pair Trading with Smith Nephew

Moving together with Smith Stock

Moving against Smith Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Cash And Short Term Investments	+ 1.0	Cash
Retained Earnings	+ 0.99	Total Stockholder Equity
Non Current Assets Total	+ 0.98	Total Assets
Non Current Liabilities Total	+ 0.98	Short Long Term Debt Total
Total Liab	+ 0.98	Short Long Term Debt Total
Accounts Payable	+ 0.98	Total Stockholder Equity

Short Term Investments	- 0.85	Net Debt
Total Liab	- 0.84	Short Term Investments
Short Term Investments	- 0.84	Short Long Term Debt Total
Non Current Liabilities Total	- 0.8	Short Term Investments
Short Term Investments	- 0.79	Total Assets
Inventory	- 0.78	Short Term Investments