Canadian Tire Net Income vs. Return On Asset
| CTC-A Stock | CAD 152.87 0.76 0.50% |
Net Income | First Reported 1996-12-31 | Previous Quarter 198.8 M | Current Value 200.6 M | Quarterly Volatility 90.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.34 | 0.3231 |
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| Net Profit Margin | 0.0122 | 0.0128 |
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| Operating Profit Margin | 0.0635 | 0.0754 |
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| Pretax Profit Margin | 0.0518 | 0.0344 |
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| Return On Assets | 0.0092 | 0.0097 |
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| Return On Equity | 0.0365 | 0.0384 |
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For Canadian Tire profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Tire to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian Tire utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Tire's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Tire over time as well as its relative position and ranking within its peers.
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Canadian Tire Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canadian Tire's current stock value. Our valuation model uses many indicators to compare Canadian Tire value to that of its competitors to determine the firm's financial worth. Canadian Tire 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 Canadian Tire is about 9,115,591,398 . At this time, Canadian Tire's Net Income is comparatively stable compared to the past year. 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 Canadian Tire's earnings, one of the primary drivers of an investment's value.Canadian 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.
Canadian Tire |
| = | 339.1 M |
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.
Canadian Tire |
| = | 0.0372 |
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.
Canadian Return On Asset Comparison
Canadian Tire is currently under evaluation in return on asset category among its peers.
Canadian Tire Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canadian Tire, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canadian Tire will eventually generate negative long term returns. The profitability progress is the general direction of Canadian Tire's change in net profit over the period of time. It can combine multiple indicators of Canadian Tire, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -181.8 M | -172.7 M | |
| Operating Income | 1.3 B | 858.7 M | |
| Income Before Tax | 572.8 M | 721 M | |
| Total Other Income Expense Net | -683.9 M | -649.7 M | |
| Net Income | 339.1 M | 513 M | |
| Income Tax Expense | 233.7 M | 207.3 M | |
| Net Income From Continuing Ops | 339.1 M | 322.1 M | |
| Net Income Applicable To Common Shares | 1.2 B | 838.5 M | |
| Net Interest Income | -321.5 M | -337.6 M | |
| Interest Income | 4.6 M | 8.7 M | |
| Change To Netincome | 11.4 M | 10.8 M | |
| Net Income Per Share | 3.79 | 4.98 | |
| Income Quality | 3.99 | 4.19 | |
| Net Income Per E B T | 0.37 | 0.73 |
Canadian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Canadian Tire. 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 Canadian Tire 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 Canadian Tire's important profitability drivers and their relationship over time.
Use Canadian Tire 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 Canadian Tire 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 Canadian Tire will appreciate offsetting losses from the drop in the long position's value.Canadian Tire Pair Trading
Canadian Tire Pair Trading Analysis
The ability to find closely correlated positions to Canadian Tire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Tire 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 Canadian Tire - 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 Canadian Tire to buy it.
The correlation of Canadian Tire 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 Canadian Tire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Tire 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 Canadian Tire 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 Canadian Tire position
In addition to having Canadian Tire 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?
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Non-Metallic and Industrial Metal Mining
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Additional Tools for Canadian Stock Analysis
When running Canadian Tire's price analysis, check to measure Canadian Tire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Tire is operating at the current time. Most of Canadian Tire's value examination focuses on studying past and present price action to predict the probability of Canadian Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Tire's price. Additionally, you may evaluate how the addition of Canadian Tire to your portfolios can decrease your overall portfolio volatility.