Lions Gate Operating Margin vs. Cash And Equivalents

LGF-A Stock  USD 7.99  0.22  2.83%   
Based on the measurements of profitability obtained from Lions Gate's financial statements, Lions Gate's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Lions Gate's ability to earn profits and add value for shareholders.

Lions Gate Operating Profit Margin

(0.22)

At present, Lions Gate's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.13, whereas Price To Sales Ratio is forecasted to decline to 0.51. At present, Lions Gate's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Non Operating Income Net Other is expected to grow to about 35.3 M, whereas Operating Income is projected to grow to (891.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.560.455
Fairly Up
Slightly volatile
For Lions Gate profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lions Gate to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lions Gate Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lions Gate's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lions Gate Entertainment 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 Lions Gate's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lions Gate is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lions Gate'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.

Lions Gate Entertainment Cash And Equivalents vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lions Gate's current stock value. Our valuation model uses many indicators to compare Lions Gate value to that of its competitors to determine the firm's financial worth.
Lions Gate Entertainment is rated below average in operating margin category among its peers. It also is rated below average in cash and equivalents category among its peers . At present, Lions Gate's Operating Profit Margin is projected to slightly decrease 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 Lions Gate's earnings, one of the primary drivers of an investment's value.

Lions Cash And Equivalents vs. Operating Margin

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.

Lions Gate

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.08) %
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.
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.

Lions Gate

Cash

 = 

Bank Deposits

+

Liquidities

 = 
184.3 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).

Lions Cash And Equivalents Comparison

Lions Gate is currently under evaluation in cash and equivalents category among its peers.

Lions Gate Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lions Gate, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lions Gate will eventually generate negative long term returns. The profitability progress is the general direction of Lions Gate's change in net profit over the period of time. It can combine multiple indicators of Lions Gate, 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 Income116 M121.8 M
Operating Income-938.8 M-891.9 M
Income Before Tax-1.2 B-1.1 B
Total Other Income Expense Net-242.5 M-230.4 M
Net Loss-1.1 B-1.1 B
Income Tax Expense-65 M-61.8 M
Net Loss-1.1 B-1.1 B
Non Operating Income Net Other33.7 M35.3 M
Net Loss-1.8 B-1.7 B
Net Interest Income-247.7 M-260.1 M
Interest Income22.1 M14.1 M
Change To Netincome2.2 B2.3 B
Net Loss(4.72)(4.49)
Income Quality(0.36)(0.34)
Net Income Per E B T 0.93  0.82 

Lions Profitability Driver Comparison

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

Use Lions Gate 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 Lions Gate 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 Lions Gate will appreciate offsetting losses from the drop in the long position's value.

Lions Gate Pair Trading

Lions Gate Entertainment Pair Trading Analysis

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

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Other Information on Investing in Lions Stock

To fully project Lions Gate's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lions Gate Entertainment 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 Lions Gate's income statement, its balance sheet, and the statement of cash flows.
Potential Lions Gate investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lions Gate investors may work on each financial statement separately, they are all related. The changes in Lions Gate's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lions Gate'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.