Alliance Data Revenue vs. Return On Asset

0HCR Stock   60.39  1.37  2.22%   
Based on the key profitability measurements obtained from Alliance Data's financial statements, Alliance Data Systems may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Alliance Data's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2012-12-31
Previous Quarter
649 M
Current Value
1.2 B
Quarterly Volatility
262.4 M
 
Yuan Drop
 
Covid
For Alliance Data profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alliance Data to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alliance Data Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alliance Data's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alliance Data Systems over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Alliance Data's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alliance Data is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alliance Data'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.

Alliance Data Systems Return On Asset vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Alliance Data's current stock value. Our valuation model uses many indicators to compare Alliance Data value to that of its competitors to determine the firm's financial worth.
Alliance Data Systems is rated below average in revenue category among its peers. It is rated below average in return on asset category among its peers . The ratio of Revenue to Return On Asset for Alliance Data Systems is about  209,589,041,096 . At this time, Alliance Data's Total Revenue is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alliance Data's earnings, one of the primary drivers of an investment's value.

Alliance Revenue vs. Competition

Alliance Data Systems is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is presently estimated at about 2.18 Trillion. Alliance Data adds roughly 3.06 Billion in revenue claiming only tiny portion of equities under Industrials industry.

Alliance Return On Asset vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Alliance Data

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
3.06 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Alliance Data

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0146
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Alliance Return On Asset Comparison

Alliance Data is currently under evaluation in return on asset category among its peers.

Alliance Data Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Alliance Data, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alliance Data will eventually generate negative long term returns. The profitability progress is the general direction of Alliance Data's change in net profit over the period of time. It can combine multiple indicators of Alliance Data, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-19 M-19.9 M
Operating Income1.6 B1.7 B
Income Before Tax968 M648.7 M
Net Income718 M584.5 M
Income Tax Expense231 M193.3 M
Total Other Income Expense Net-625 M-656.2 M
Net Income Applicable To Common Shares200.7 M190.7 M
Interest Income568 M547.6 M
Change To Netincome1.7 B1.2 B

Alliance Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Alliance Data. 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 Alliance Data 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 Alliance Data's important profitability drivers and their relationship over time.

Use Alliance Data 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 Alliance Data 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 Alliance Data will appreciate offsetting losses from the drop in the long position's value.

Alliance Data Pair Trading

Alliance Data Systems Pair Trading Analysis

The ability to find closely correlated positions to Alliance Data could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alliance Data 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 Alliance Data - 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 Alliance Data Systems to buy it.
The correlation of Alliance Data 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 Alliance Data moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alliance Data Systems 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 Alliance Data 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

Use Investing Themes to Complement your Alliance Data position

In addition to having Alliance Data 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.

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Run Construction Thematic Idea Now

Construction
Construction Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
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Additional Tools for Alliance Stock Analysis

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