CSL Net Income vs. Return On Equity
| CSJ Stock | EUR 166.44 1.00 0.60% |
For CSL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CSL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CSL Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CSL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CSL Limited over time as well as its relative position and ranking within its peers.
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CSL Limited Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CSL's current stock value. Our valuation model uses many indicators to compare CSL value to that of its competitors to determine the firm's financial worth. CSL Limited is rated below average in net income category among its peers. It is rated below average in return on equity category among its peers . The ratio of Net Income to Return On Equity for CSL Limited is about 16,851,270,553 . 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 CSL's earnings, one of the primary drivers of an investment's value.CSL Return On Equity 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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| = | 2.25 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 Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.13 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
CSL Return On Equity Comparison
CSL is rated below average in return on equity category among its peers.
CSL Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CSL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CSL will eventually generate negative long term returns. The profitability progress is the general direction of CSL's change in net profit over the period of time. It can combine multiple indicators of CSL, 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.
CSL Limited researches, develops, manufactures, markets, and distributes biopharmaceutical and allied products in Australia, the United States, Germany, the United Kingdom, Switzerland, China, and internationally. CSL Limited was founded in 1916 and is headquartered in Parkville, Australia. CSL LTD operates under Biotechnology classification in Germany and is traded on Frankfurt Stock Exchange.
CSL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CSL. 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 CSL 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 CSL's important profitability drivers and their relationship over time.
Use CSL 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 CSL 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 CSL will appreciate offsetting losses from the drop in the long position's value.CSL Pair Trading
CSL Limited Pair Trading Analysis
The ability to find closely correlated positions to CSL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CSL 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 CSL - 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 CSL Limited to buy it.
The correlation of CSL 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 CSL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CSL Limited 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 CSL 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 CSL position
In addition to having CSL 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 Robots And Drones Thematic Idea Now
Robots And Drones
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones 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 Robots And Drones Theme or any other thematic opportunities.
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Other Information on Investing in CSL Stock
To fully project CSL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CSL Limited 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 CSL's income statement, its balance sheet, and the statement of cash flows.