Inwido AB Return On Equity vs. Return On Asset

5IW Stock  EUR 15.95  0.20  1.27%   
Based on the measurements of profitability obtained from Inwido AB's financial statements, Inwido AB may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Inwido AB's ability to earn profits and add value for shareholders.
For Inwido AB profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Inwido AB to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Inwido AB utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Inwido AB's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Inwido AB 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 Inwido AB's value and its price as these two are different measures arrived at by different means. Investors typically determine if Inwido AB is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Inwido AB'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.

Inwido AB Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Inwido AB's current stock value. Our valuation model uses many indicators to compare Inwido AB value to that of its competitors to determine the firm's financial worth.
Inwido AB is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers reporting about  0.45  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Inwido AB is roughly  2.23 . 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 Inwido AB's earnings, one of the primary drivers of an investment's value.

Inwido Return On Asset 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.

Inwido AB

Return On Equity

 = 

Net Income

Total Equity

 = 
0.16
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.
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.

Inwido AB

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0728
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.

Inwido Return On Asset Comparison

Inwido AB is currently under evaluation in return on asset category among its peers.

Inwido AB Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Inwido AB, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Inwido AB will eventually generate negative long term returns. The profitability progress is the general direction of Inwido AB's change in net profit over the period of time. It can combine multiple indicators of Inwido AB, 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.
Inwido AB develops, manufactures, and sells windows and doors. Inwido AB was founded in 1811 and is headquartered in Malm, Sweden. INWIDO AB is traded on Frankfurt Stock Exchange in Germany.

Inwido Profitability Driver Comparison

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

Use Inwido AB 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 Inwido AB 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 Inwido AB will appreciate offsetting losses from the drop in the long position's value.

Inwido AB Pair Trading

Inwido AB Pair Trading Analysis

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

In addition to having Inwido AB 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?

Run Junk Bonds Funds Thematic Idea Now

Junk Bonds Funds
Junk Bonds Funds Theme
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 38 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 Junk Bonds Funds Theme or any other thematic opportunities.
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Other Information on Investing in Inwido Stock

To fully project Inwido AB's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Inwido AB 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 Inwido AB's income statement, its balance sheet, and the statement of cash flows.
Potential Inwido AB investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Inwido AB investors may work on each financial statement separately, they are all related. The changes in Inwido AB's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Inwido AB's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.