AAA Technologies Operating Margin vs. Profit Margin
| AAATECH Stock | 113.56 1.14 1.01% |
For AAA Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AAA Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AAA Technologies Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AAA Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AAA Technologies Limited over time as well as its relative position and ranking within its peers.
AAA |
AAA Technologies Profit Margin vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AAA Technologies's current stock value. Our valuation model uses many indicators to compare AAA Technologies value to that of its competitors to determine the firm's financial worth. AAA Technologies Limited is number one stock in operating margin category among its peers. It also is number one stock in profit margin category among its peers fabricating about 0.69 of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for AAA Technologies Limited is roughly 1.45 . Comparative valuation analysis is a catch-all model that can be used if you cannot value AAA Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AAA Technologies' 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.AAA Profit Margin vs. Operating Margin
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.
AAA Technologies |
| = | 0.21 % |
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.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
AAA Technologies |
| = | 0.14 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
AAA Profit Margin Comparison
AAA Technologies is currently under evaluation in profit margin category among its peers.
AAA Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AAA Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AAA Technologies will eventually generate negative long term returns. The profitability progress is the general direction of AAA Technologies' change in net profit over the period of time. It can combine multiple indicators of AAA Technologies, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 174 M | 182.7 M | |
| Operating Income | 34.1 M | 27.9 M | |
| Income Before Tax | 43 M | 30 M | |
| Total Other Income Expense Net | 8.9 M | 9.3 M | |
| Net Income | 32.1 M | 28.4 M | |
| Income Tax Expense | 10.8 M | 7.8 M |
AAA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AAA Technologies. 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 AAA Technologies 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 AAA Technologies' important profitability drivers and their relationship over time.
Use AAA Technologies 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 AAA Technologies 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 AAA Technologies will appreciate offsetting losses from the drop in the long position's value.AAA Technologies Pair Trading
AAA Technologies Limited Pair Trading Analysis
The ability to find closely correlated positions to AAA Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AAA Technologies 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 AAA Technologies - 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 AAA Technologies Limited to buy it.
The correlation of AAA Technologies 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 AAA Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AAA Technologies 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 AAA Technologies 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 AAA Technologies position
In addition to having AAA Technologies 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 Retail Thematic Idea Now
Retail
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail 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 Retail Theme or any other thematic opportunities.
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Other Information on Investing in AAA Stock
To fully project AAA Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AAA Technologies 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 AAA Technologies' income statement, its balance sheet, and the statement of cash flows.