Korn Ferry Return On Asset vs. Operating Margin

KFY Stock  EUR 64.00  0.63  0.97%   
Based on the key profitability measurements obtained from Korn Ferry's financial statements, Korn Ferry 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 Korn Ferry's ability to earn profits and add value for shareholders.
For Korn Ferry profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Korn Ferry to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Korn Ferry utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Korn Ferry's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Korn Ferry over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more detail on how to invest in Korn Stock please use our How to Invest in Korn Ferry guide.
Please note, there is a significant difference between Korn Ferry's value and its price as these two are different measures arrived at by different means. Investors typically determine if Korn Ferry is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Korn Ferry'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.

Korn Ferry Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Korn Ferry's current stock value. Our valuation model uses many indicators to compare Korn Ferry value to that of its competitors to determine the firm's financial worth.
Korn Ferry is rated fourth overall in return on asset category among its peers. It is rated second overall in operating margin category among its peers reporting about  1.81  of Operating Margin per Return On Asset. 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 Korn Ferry's earnings, one of the primary drivers of an investment's value.

Korn Operating Margin vs. Return On Asset

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.

Korn Ferry

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0993
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.
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.

Korn Ferry

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.18 %
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.

Korn Operating Margin Comparison

Korn Ferry is currently regarded as number one stock in operating margin category among its peers.

Korn Ferry Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Korn Ferry, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Korn Ferry will eventually generate negative long term returns. The profitability progress is the general direction of Korn Ferry's change in net profit over the period of time. It can combine multiple indicators of Korn Ferry, 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.
Korn Ferry, together with its subsidiaries, provides talent management solutions worldwide. Korn Ferry was founded in 1969 and is based in Los Angeles, California. KORN FERRY operates under Staffing Outsourcing Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8678 people.

Korn Profitability Driver Comparison

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

Use Korn Ferry 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 Korn Ferry 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 Korn Ferry will appreciate offsetting losses from the drop in the long position's value.

Korn Ferry Pair Trading

Korn Ferry Pair Trading Analysis

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

In addition to having Korn Ferry 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 Computers Thematic Idea Now

Computers
Computers Theme
Companies that manufacture and distribute personal and business computers. The Computers theme has 44 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 Computers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Korn Stock

When determining whether Korn Ferry offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Korn Ferry'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 Korn Ferry Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Korn Ferry Stock:
Check out Correlation Analysis.
For more detail on how to invest in Korn Stock please use our How to Invest in Korn Ferry guide.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
To fully project Korn Ferry's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Korn Ferry 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 Korn Ferry's income statement, its balance sheet, and the statement of cash flows.
Potential Korn Ferry investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Korn Ferry investors may work on each financial statement separately, they are all related. The changes in Korn Ferry's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Korn Ferry'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.