Considering Acadian Timber's profitability and operating efficiency indicators, Acadian Timber Corp 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 Acadian Timber's ability to earn profits and add value for shareholders.
For Acadian Timber profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Acadian Timber to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Acadian Timber Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Acadian Timber's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Acadian Timber Corp over time as well as its relative position and ranking within its peers.
Please note, there is a significant difference between Acadian Timber's value and its price as these two are different measures arrived at by different means. Investors typically determine if Acadian Timber is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acadian Timber'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.
Acadian Timber Corp Return On Asset vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Acadian Timber's current stock value. Our valuation model uses many indicators to compare Acadian Timber value to that of its competitors to determine the firm's financial worth.
Acadian Timber Corp is number one stock in profit margin category among its peers. It is rated second in return on asset category among its peers reporting about 0.12 of Return On Asset per Profit Margin. The ratio of Profit Margin to Return On Asset for Acadian Timber Corp is roughly 8.58 . At this time, Acadian Timber's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Acadian Timber by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Acadian Timber'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.
Acadian Return On Asset vs. Profit Margin
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.
Acadian Timber
Profit Margin
=
Net Income
Revenue
X
100
=
0.23 %
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.
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.
Acadian Timber
Return On Asset
=
Net Income
Total Assets
=
0.027
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.
Acadian Return On Asset Comparison
Acadian Timber is currently under evaluation in return on asset category among its peers.
Acadian Timber Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Acadian Timber, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Acadian Timber will eventually generate negative long term returns. The profitability progress is the general direction of Acadian Timber's change in net profit over the period of time. It can combine multiple indicators of Acadian Timber, 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.
Profitability drivers are factors that can directly affect your investment outlook on Acadian Timber. 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 Acadian Timber 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 Acadian Timber's important profitability drivers and their relationship over time.
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 Acadian Timber 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 Acadian Timber will appreciate offsetting losses from the drop in the long position's value.
Acadian Timber Pair Trading
Acadian Timber Corp Pair Trading Analysis
The ability to find closely correlated positions to Acadian Timber could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Acadian Timber 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 Acadian Timber - 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 Acadian Timber Corp to buy it.
The correlation of Acadian Timber 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 Acadian Timber moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Acadian Timber Corp 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 Acadian Timber 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.
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To fully project Acadian Timber's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Acadian Timber Corp 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 Acadian Timber's income statement, its balance sheet, and the statement of cash flows.
Potential Acadian Timber investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Acadian Timber investors may work on each financial statement separately, they are all related. The changes in Acadian Timber's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Acadian Timber'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.
