Descartes Systems Gross Profit vs. Operating Margin
| DSG Stock | CAD 165.10 0.36 0.22% |
For Descartes Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Descartes Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Descartes Systems Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Descartes Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Descartes Systems Group over time as well as its relative position and ranking within its peers.
Descartes |
Descartes Systems Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Descartes Systems's current stock value. Our valuation model uses many indicators to compare Descartes Systems value to that of its competitors to determine the firm's financial worth. Descartes Systems Group is rated # 4 in gross profit category among its peers. It is one of the top stocks in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Descartes Systems Group is about 1,323,936,057 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Descartes Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Descartes Systems' 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.Descartes Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Descartes Systems |
| = | 372.69 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Descartes Systems |
| = | 0.28 % |
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.
Descartes Operating Margin Comparison
Descartes Systems is currently under evaluation in operating margin category among its peers.
Descartes Systems Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Descartes Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Descartes Systems will eventually generate negative long term returns. The profitability progress is the general direction of Descartes Systems' change in net profit over the period of time. It can combine multiple indicators of Descartes Systems, 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.
The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. The company was founded in 1981 and is headquartered in Waterloo, Canada. DESCARTES SYS operates under Software - Application classification in Canada and is traded on Toronto Stock Exchange. It employs 1334 people.
Descartes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Descartes Systems. 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 Descartes Systems 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 Descartes Systems' important profitability drivers and their relationship over time.
Use Descartes Systems 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 Descartes Systems 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 Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Descartes Systems Pair Trading
Descartes Systems Group Pair Trading Analysis
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems 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 Descartes Systems - 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 Descartes Systems Group to buy it.
The correlation of Descartes Systems 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 Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems 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 Descartes Systems 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 Descartes Systems position
In addition to having Descartes Systems 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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Check out Investing Opportunities. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project Descartes Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Descartes Systems 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 Descartes Systems' income statement, its balance sheet, and the statement of cash flows.