DB Financial Return On Equity vs. Operating Margin
| 016610 Stock | 5,160 10.00 0.19% |
For DB Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DB Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DB Financial Investment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DB Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DB Financial Investment over time as well as its relative position and ranking within its peers.
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DB Financial Investment Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DB Financial's current stock value. Our valuation model uses many indicators to compare DB Financial value to that of its competitors to determine the firm's financial worth. DB Financial Investment is number one stock in return on equity category among its peers. It also is number one stock in operating margin category among its peers reporting about 9.94 of Operating Margin per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value DB Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DB Financial'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.016610 Operating Margin 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.
DB Financial |
| = | 0.0354 |
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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
DB Financial |
| = | 0.35 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
016610 Operating Margin Comparison
DB Financial is currently under evaluation in operating margin category among its peers.
016610 Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DB Financial. 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 DB Financial 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 DB Financial's important profitability drivers and their relationship over time.
Use DB Financial 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 DB Financial 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 DB Financial will appreciate offsetting losses from the drop in the long position's value.DB Financial Pair Trading
DB Financial Investment Pair Trading Analysis
The ability to find closely correlated positions to DB Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DB Financial 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 DB Financial - 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 DB Financial Investment to buy it.
The correlation of DB Financial 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 DB Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DB Financial Investment 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 DB Financial 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 DB Financial position
In addition to having DB Financial 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 016610 Stock
To fully project DB Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DB Financial Investment 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 DB Financial's income statement, its balance sheet, and the statement of cash flows.