AIR LIQUIDE Profit Margin vs. Operating Margin
| AILA Stock | EUR 31.40 0.40 1.29% |
For AIR LIQUIDE profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AIR LIQUIDE to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AIR LIQUIDE ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AIR LIQUIDE's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AIR LIQUIDE ADR over time as well as its relative position and ranking within its peers.
AIR |
AIR LIQUIDE ADR Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AIR LIQUIDE's current stock value. Our valuation model uses many indicators to compare AIR LIQUIDE value to that of its competitors to determine the firm's financial worth. AIR LIQUIDE ADR is rated second in profit margin category among its peers. It also is rated second in operating margin category among its peers reporting about 1.60 of Operating Margin per Profit Margin. 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 AIR LIQUIDE's earnings, one of the primary drivers of an investment's value.AIR Operating Margin 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.
AIR LIQUIDE |
| = | 0.1 % |
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.
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.
AIR LIQUIDE |
| = | 0.16 % |
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.
AIR Operating Margin Comparison
AIR LIQUIDE is number one stock in operating margin category among its peers.
AIR LIQUIDE Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AIR LIQUIDE, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AIR LIQUIDE will eventually generate negative long term returns. The profitability progress is the general direction of AIR LIQUIDE's change in net profit over the period of time. It can combine multiple indicators of AIR LIQUIDE, 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.
LAir Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company was incorporated in 1902 and is headquartered in Paris, France. AIR LIQUIDE operates under Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 64445 people.
AIR Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AIR LIQUIDE. 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 AIR LIQUIDE 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 AIR LIQUIDE's important profitability drivers and their relationship over time.
Use AIR LIQUIDE 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 AIR LIQUIDE 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 AIR LIQUIDE will appreciate offsetting losses from the drop in the long position's value.AIR LIQUIDE Pair Trading
AIR LIQUIDE ADR Pair Trading Analysis
The ability to find closely correlated positions to AIR LIQUIDE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AIR LIQUIDE 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 AIR LIQUIDE - 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 AIR LIQUIDE ADR to buy it.
The correlation of AIR LIQUIDE 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 AIR LIQUIDE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AIR LIQUIDE ADR 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 AIR LIQUIDE 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 AIR LIQUIDE position
In addition to having AIR LIQUIDE 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 Management Thematic Idea Now
Management
Companies providing management services to businesses. The Management theme has 41 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 Management Theme or any other thematic opportunities.
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Other Information on Investing in AIR Stock
To fully project AIR LIQUIDE's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AIR LIQUIDE ADR 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 AIR LIQUIDE's income statement, its balance sheet, and the statement of cash flows.