Lion Metal Operating Margin vs. Return On Asset
| LION Stock | IDR 302.00 2.00 0.66% |
For Lion Metal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lion Metal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lion Metal Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lion Metal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lion Metal Works over time as well as its relative position and ranking within its peers.
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Lion Metal Works Return On Asset vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lion Metal's current stock value. Our valuation model uses many indicators to compare Lion Metal value to that of its competitors to determine the firm's financial worth. Lion Metal Works is currently regarded as number one stock in operating margin category among its peers. It also is currently regarded as number one stock in return on asset category among its peers reporting about 0.38 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Lion Metal Works is roughly 2.61 . 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 Lion Metal's earnings, one of the primary drivers of an investment's value.Lion Return On Asset 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.
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| = | 0.06 % |
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.
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.
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| = | 0.0214 |
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.
Lion Return On Asset Comparison
Lion Metal is currently under evaluation in return on asset category among its peers.
Lion Metal Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lion Metal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lion Metal will eventually generate negative long term returns. The profitability progress is the general direction of Lion Metal's change in net profit over the period of time. It can combine multiple indicators of Lion Metal, 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.
PT Lion Metal Works Tbk manufactures and sells office equipment and steel fabricated products in Indonesia and internationally. The company was founded in 1972 and is headquartered in Jakarta, Indonesia. Lion Metal operates under Business Equipment Supplies classification in Indonesia and is traded on Jakarta Stock Exchange. It employs 894 people.
Lion Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lion Metal. 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 Lion Metal 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 Lion Metal's important profitability drivers and their relationship over time.
Use Lion Metal 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 Lion Metal 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 Lion Metal will appreciate offsetting losses from the drop in the long position's value.Lion Metal Pair Trading
Lion Metal Works Pair Trading Analysis
The ability to find closely correlated positions to Lion Metal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lion Metal 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 Lion Metal - 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 Lion Metal Works to buy it.
The correlation of Lion Metal 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 Lion Metal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lion Metal Works 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 Lion Metal 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.Use Investing Themes to Complement your Lion Metal position
In addition to having Lion Metal 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 Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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Other Information on Investing in Lion Stock
To fully project Lion Metal's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lion Metal Works 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 Lion Metal's income statement, its balance sheet, and the statement of cash flows.