Barratt Developments Gross Profit vs. Net Income
| 3BA Stock | EUR 5.36 0.31 6.14% |
For Barratt Developments profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Barratt Developments to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Barratt Developments plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Barratt Developments's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Barratt Developments plc over time as well as its relative position and ranking within its peers.
Barratt |
Barratt Developments plc Net Income vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Barratt Developments's current stock value. Our valuation model uses many indicators to compare Barratt Developments value to that of its competitors to determine the firm's financial worth. Barratt Developments plc is rated below average in gross profit category among its peers. It is rated below average in net income category among its peers making up about 0.39 of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Barratt Developments plc is roughly 2.54 . 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 Barratt Developments' earnings, one of the primary drivers of an investment's value.Barratt Net Income vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Barratt Developments |
| = | 1.31 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Barratt Developments |
| = | 515.1 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Barratt Net Income Comparison
Barratt Developments is rated below average in net income category among its peers.
Barratt Developments Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Barratt Developments, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Barratt Developments will eventually generate negative long term returns. The profitability progress is the general direction of Barratt Developments' change in net profit over the period of time. It can combine multiple indicators of Barratt Developments, 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.
Barratt Developments PLC engages in the housebuilding and commercial development businesses in Great Britain. The company was founded in 1958 and is headquartered in Coalville, the United Kingdom. BARRATT DEV operates under Residential Construction classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6330 people.
Barratt Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Barratt Developments. 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 Barratt Developments 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 Barratt Developments' important profitability drivers and their relationship over time.
Use Barratt Developments 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 Barratt Developments 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 Barratt Developments will appreciate offsetting losses from the drop in the long position's value.Barratt Developments Pair Trading
Barratt Developments plc Pair Trading Analysis
The ability to find closely correlated positions to Barratt Developments could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Barratt Developments 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 Barratt Developments - 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 Barratt Developments plc to buy it.
The correlation of Barratt Developments 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 Barratt Developments moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Barratt Developments plc 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 Barratt Developments 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 Barratt Developments position
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Other Information on Investing in Barratt Stock
To fully project Barratt Developments' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Barratt Developments plc 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 Barratt Developments' income statement, its balance sheet, and the statement of cash flows.