Lemon Tree Return On Asset vs. Operating Margin

LEMONTREE   137.82  2.65  1.96%   
Based on the measurements of profitability obtained from Lemon Tree's financial statements, Lemon Tree Hotels may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Lemon Tree's ability to earn profits and add value for shareholders.
For Lemon Tree profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lemon Tree to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lemon Tree Hotels utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lemon Tree's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lemon Tree Hotels over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between Lemon Tree's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lemon Tree is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lemon Tree'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.

Lemon Tree Hotels Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lemon Tree's current stock value. Our valuation model uses many indicators to compare Lemon Tree value to that of its competitors to determine the firm's financial worth.
Lemon Tree Hotels is currently regarded as number one stock in return on asset category among its peers. It also is currently regarded as number one stock in operating margin category among its peers reporting about  4.50  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 Lemon Tree's earnings, one of the primary drivers of an investment's value.

Lemon 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.

Lemon Tree

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0671
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.

Lemon Tree

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.30 %
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.

Lemon Operating Margin Comparison

Lemon Tree is currently under evaluation in operating margin category among its peers.

Lemon Tree Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lemon Tree, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lemon Tree will eventually generate negative long term returns. The profitability progress is the general direction of Lemon Tree's change in net profit over the period of time. It can combine multiple indicators of Lemon Tree, 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 Income1.6 B1.7 B
Operating Income7.3 B7.7 B
Income Before Tax2.2 B2.3 B
Total Other Income Expense Net-5.1 B-4.9 B
Net Income1.5 B1.6 B
Income Tax Expense341.3 M358.3 M
Net Income From Continuing Ops1.8 B1.9 B
Net Income Applicable To Common Shares1.3 B1.4 B
Interest Income68.5 M65.1 M
Net Interest Income-2 B-2.1 B
Change To Netincome2.5 B2.6 B

Lemon Profitability Driver Comparison

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

Use Lemon Tree 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 Lemon Tree 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 Lemon Tree will appreciate offsetting losses from the drop in the long position's value.

Lemon Tree Pair Trading

Lemon Tree Hotels Pair Trading Analysis

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

In addition to having Lemon Tree 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 Business Services Thematic Idea Now

Business Services
Business Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 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 Business Services Theme or any other thematic opportunities.
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Additional Tools for Lemon Stock Analysis

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