Bank of Hawaii Operating Margin vs. Return On Asset

BOH Stock  USD 78.00  0.27  0.34%   
Considering the key profitability indicators obtained from Bank of Hawaii's historical financial statements, Bank of Hawaii's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Bank of Hawaii's ability to earn profits and add value for shareholders.

Bank of Hawaii Operating Profit Margin

0.3

As of now, Bank of Hawaii's Days Sales Outstanding is decreasing as compared to previous years. The Bank of Hawaii's current Operating Cash Flow Sales Ratio is estimated to increase to 0.26, while Price To Sales Ratio is projected to decrease to 2.85. As of now, Bank of Hawaii's Net Income From Continuing Ops is increasing as compared to previous years. The Bank of Hawaii's current Net Interest Income is estimated to increase to about 526.7 M, while Accumulated Other Comprehensive Income is forecasted to increase to (376.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.790.89
Fairly Down
Slightly volatile
Net Profit Margin0.20.2579
Significantly Down
Very volatile
Operating Profit Margin0.30.3424
Fairly Down
Very volatile
Pretax Profit Margin0.30.3421
Fairly Down
Pretty Stable
Return On Assets0.00920.0072
Significantly Up
Slightly volatile
Return On Equity0.130.1211
Notably Up
Slightly volatile
For Bank of Hawaii profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bank of Hawaii to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bank of Hawaii utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bank of Hawaii's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bank of Hawaii over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Bank Stock please use our How to Invest in Bank of Hawaii guide.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bank of Hawaii. If investors know Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bank of Hawaii listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.20)
Dividend Share
2.8
Earnings Share
3.33
Revenue Per Share
15.82
Quarterly Revenue Growth
(0.06)
The market value of Bank of Hawaii is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of Hawaii's value that differs from its market value or its book value, called intrinsic value, which is Bank of Hawaii's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bank of Hawaii's market value can be influenced by many factors that don't directly affect Bank of Hawaii's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bank of Hawaii's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Hawaii is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Hawaii'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.

Bank of Hawaii Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bank of Hawaii's current stock value. Our valuation model uses many indicators to compare Bank of Hawaii value to that of its competitors to determine the firm's financial worth.
Bank of Hawaii is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.02  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Bank of Hawaii is roughly  58.42 . As of now, Bank of Hawaii's Operating Profit Margin is decreasing as compared to previous years. 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 Bank of Hawaii's earnings, one of the primary drivers of an investment's value.

Bank Return On Asset 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.

Bank of Hawaii

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.35 %
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.
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.

Bank of Hawaii

Return On Asset

 = 

Net Income

Total Assets

 = 
0.006
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.

Bank Return On Asset Comparison

Bank of Hawaii is currently under evaluation in return on asset category among its peers.

Bank of Hawaii Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bank of Hawaii, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bank of Hawaii will eventually generate negative long term returns. The profitability progress is the general direction of Bank of Hawaii's change in net profit over the period of time. It can combine multiple indicators of Bank of Hawaii, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-396.7 M-376.9 M
Operating Income227.3 M235.5 M
Net Income171.2 M170.8 M
Income Tax Expense55.9 M67.5 M
Income Before Tax227.1 M252.6 M
Total Other Income Expense Net-205 K-215.2 K
Net Income Applicable To Common Shares250.6 M189.4 M
Net Income From Continuing Ops202.1 M206.7 M
Net Interest Income522 M526.7 M
Interest Income772.3 M608 M
Change To Netincome66.4 M69.7 M
Net Income Per Share 4.36  2.23 
Income Quality 0.88  1.04 
Net Income Per E B T 0.75  0.54 

Bank Profitability Driver Comparison

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

Use Bank of Hawaii 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 Bank of Hawaii 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 Bank of Hawaii will appreciate offsetting losses from the drop in the long position's value.

Bank of Hawaii Pair Trading

Bank of Hawaii Pair Trading Analysis

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

In addition to having Bank of Hawaii 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.

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Automobiles and Trucks
Automobiles and Trucks Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks 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 Automobiles and Trucks Theme or any other thematic opportunities.
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When determining whether Bank of Hawaii offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of Hawaii's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of Hawaii Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of Hawaii Stock:
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For more detail on how to invest in Bank Stock please use our How to Invest in Bank of Hawaii guide.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Bank of Hawaii's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bank of Hawaii 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 Bank of Hawaii's income statement, its balance sheet, and the statement of cash flows.
Potential Bank of Hawaii investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Bank of Hawaii investors may work on each financial statement separately, they are all related. The changes in Bank of Hawaii's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bank of Hawaii'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.