DXC Technology Net Income vs. Gross Profit

DXC Stock  USD 21.85  0.43  1.93%   
Based on the key profitability measurements obtained from DXC Technology's financial statements, DXC Technology's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess DXC Technology's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-06-30
Previous Quarter
26 M
Current Value
42 M
Quarterly Volatility
488 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, DXC Technology's Days Sales Outstanding is projected to slightly grow based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 96.38, whereas EV To Sales is forecasted to decline to 0.42. At present, DXC Technology's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 90.3 M, whereas Accumulated Other Comprehensive Income is projected to grow to (695.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.150.1234
Fairly Up
Pretty Stable
For DXC Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DXC Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DXC Technology Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DXC Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DXC Technology Co over time as well as its relative position and ranking within its peers.
  

DXC Technology's Revenue Breakdown by Earning Segment

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Is IT Consulting & Other Services 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 DXC Technology. If investors know DXC 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 DXC Technology 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
(0.53)
Earnings Share
0.18
Revenue Per Share
72.47
Quarterly Revenue Growth
(0.06)
Return On Assets
0.0103
The market value of DXC Technology is measured differently than its book value, which is the value of DXC that is recorded on the company's balance sheet. Investors also form their own opinion of DXC Technology's value that differs from its market value or its book value, called intrinsic value, which is DXC Technology'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 DXC Technology's market value can be influenced by many factors that don't directly affect DXC Technology'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 DXC Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if DXC Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DXC Technology'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.

DXC Technology Gross Profit vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining DXC Technology's current stock value. Our valuation model uses many indicators to compare DXC Technology value to that of its competitors to determine the firm's financial worth.
DXC Technology Co is rated below average in net income category among its peers. It is rated # 5 in gross profit category among its peers fabricating about  39.36  of Gross Profit per Net Income. At present, DXC Technology's Net Income is projected to increase significantly based on the last few years of reporting. 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 DXC Technology's earnings, one of the primary drivers of an investment's value.

DXC Technology's Earnings Breakdown by Geography

DXC Gross Profit 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.

DXC Technology

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
91 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.
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.

DXC Technology

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
3.58 B
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.

DXC Gross Profit Comparison

DXC Technology is currently under evaluation in gross profit category among its peers.

DXC Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in DXC Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DXC Technology will eventually generate negative long term returns. The profitability progress is the general direction of DXC Technology's change in net profit over the period of time. It can combine multiple indicators of DXC Technology, 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-732 M-695.4 M
Operating Income466 M635.5 M
Income Before Tax109 M128.3 M
Total Other Income Expense Net-357 M-374.9 M
Net Income91 M75.2 M
Income Tax Expense23 M21.9 M
Net Loss-511.2 M-485.6 M
Net Income From Continuing Ops86 M90.3 M
Interest Income214 M143.7 M
Net Interest Income-84 M-88.2 M
Non Operating Income Net Other292.5 M535.2 M
Change To Netincome783.1 M440.2 M
Net Income Per Share 0.46  0.81 
Income Quality 14.96  15.70 
Net Income Per E B T 0.83  1.08 

DXC Profitability Driver Comparison

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

Use DXC Technology 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 DXC Technology 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 DXC Technology will appreciate offsetting losses from the drop in the long position's value.

DXC Technology Pair Trading

DXC Technology Co Pair Trading Analysis

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

In addition to having DXC Technology 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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Emerging Markets ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Emerging Markets ETFs theme has 29 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 Emerging Markets ETFs Theme or any other thematic opportunities.
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When determining whether DXC Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DXC Technology'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 Dxc Technology Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dxc Technology Co Stock:
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You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project DXC Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DXC Technology 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 DXC Technology's income statement, its balance sheet, and the statement of cash flows.
Potential DXC Technology investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DXC Technology investors may work on each financial statement separately, they are all related. The changes in DXC Technology's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DXC Technology'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.