Apple Net Income vs. Return On Asset
| AAPL34 Stock | BRL 74.61 0.71 0.96% |
For Apple profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Apple to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Apple Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Apple's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Apple Inc over time as well as its relative position and ranking within its peers.
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Apple Inc Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Apple's current stock value. Our valuation model uses many indicators to compare Apple value to that of its competitors to determine the firm's financial worth. Apple Inc is number one stock in net income category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for Apple Inc is about 509,979,560,552 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Apple by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Apple'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.Apple Return On Asset vs. Net Income
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.
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| = | 99.8 B |
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.
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.
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| = | 0.2 |
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.
Apple Return On Asset Comparison
Apple is currently under evaluation in return on asset category among its peers.
Apple Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Apple, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Apple will eventually generate negative long term returns. The profitability progress is the general direction of Apple's change in net profit over the period of time. It can combine multiple indicators of Apple, 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.
Apple Inc. designs, manufactures, and markets mobile communication and media devices, and personal computers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California. APPLE DRN operates under Consumer Electronics classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 100000 people.
Apple Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Apple. 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 Apple 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 Apple's important profitability drivers and their relationship over time.
Use Apple 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 Apple 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 Apple will appreciate offsetting losses from the drop in the long position's value.Apple Pair Trading
Apple Inc Pair Trading Analysis
The ability to find closely correlated positions to Apple could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Apple 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 Apple - 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 Apple Inc to buy it.
The correlation of Apple 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 Apple moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Apple Inc 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 Apple 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 Apple position
In addition to having Apple 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 Apparel Thematic Idea Now
Apparel
Companies manufacturing textile accessories and apparel products. The Apparel theme has 42 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 Apparel Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Apple Stock
When determining whether Apple Inc is a strong investment it is important to analyze Apple's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Apple's future performance. For an informed investment choice regarding Apple Stock, refer to the following important reports:Check out Trending Equities. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Apple's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Apple Inc 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 Apple's income statement, its balance sheet, and the statement of cash flows.