Elma Electronic Profit Margin vs. Cash And Equivalents

ELMN Stock  CHF 1,050  0.00  0.00%   
Based on the measurements of profitability obtained from Elma Electronic's financial statements, Elma Electronic AG may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Elma Electronic's ability to earn profits and add value for shareholders.
For Elma Electronic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Elma Electronic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Elma Electronic AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Elma Electronic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Elma Electronic AG over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Please note, there is a significant difference between Elma Electronic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Elma Electronic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Elma Electronic'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.

Elma Electronic AG Cash And Equivalents vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Elma Electronic's current stock value. Our valuation model uses many indicators to compare Elma Electronic value to that of its competitors to determine the firm's financial worth.
Elma Electronic AG is one of the top stocks in profit margin category among its peers. It also is one of the top stocks in cash and equivalents category among its peers creating about  145,000,000  of Cash And Equivalents per Profit Margin. 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 Elma Electronic's earnings, one of the primary drivers of an investment's value.

Elma Cash And Equivalents vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Elma Electronic

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.04 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Elma Electronic

Cash

 = 

Bank Deposits

+

Liquidities

 = 
6.5 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Elma Cash And Equivalents Comparison

Elma Electronic is currently under evaluation in cash and equivalents category among its peers.

Elma Electronic Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Elma Electronic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Elma Electronic will eventually generate negative long term returns. The profitability progress is the general direction of Elma Electronic's change in net profit over the period of time. It can combine multiple indicators of Elma Electronic, 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.
Elma Electronic AG manufactures and sells electronic packaging products for the embedded systems market worldwide. The company was founded in 1960 and is headquartered in Wetzikon, Switzerland. Elma Electronic operates under Electronic Components classification in Switzerland and is traded on Switzerland Exchange. It employs 745 people.

Elma Profitability Driver Comparison

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

Use Elma Electronic 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 Elma Electronic 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 Elma Electronic will appreciate offsetting losses from the drop in the long position's value.

Elma Electronic Pair Trading

Elma Electronic AG Pair Trading Analysis

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

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Additional Tools for Elma Stock Analysis

When running Elma Electronic's price analysis, check to measure Elma Electronic'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 Elma Electronic is operating at the current time. Most of Elma Electronic's value examination focuses on studying past and present price action to predict the probability of Elma Electronic's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Elma Electronic's price. Additionally, you may evaluate how the addition of Elma Electronic to your portfolios can decrease your overall portfolio volatility.