CME Revenue vs. Cash And Equivalents
| MX4A Stock | EUR 223.10 2.45 1.09% |
For CME profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CME to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CME Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CME's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CME Group over time as well as its relative position and ranking within its peers.
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CME Group Cash And Equivalents vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CME's current stock value. Our valuation model uses many indicators to compare CME value to that of its competitors to determine the firm's financial worth. CME Group is regarded second in revenue category among its peers. It is considered to be number one stock in cash and equivalents category among its peers creating about 0.20 of Cash And Equivalents per Revenue. The ratio of Revenue to Cash And Equivalents for CME Group is roughly 4.92 . 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 CME's earnings, one of the primary drivers of an investment's value.CME Revenue vs. Competition
CME Group is regarded second in revenue category among its peers. Market size based on revenue of Financial Exchanges industry is now estimated at about 60.91 Billion. CME holds roughly 5.02 Billion in revenue claiming about 8% of equities under Financial Exchanges industry.
CME Cash And Equivalents vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
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| = | 5.02 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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.
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| = | 1.02 B |
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).
CME Cash And Equivalents Comparison
CME is currently under evaluation in cash and equivalents category among its peers.
CME Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CME, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CME will eventually generate negative long term returns. The profitability progress is the general direction of CME's change in net profit over the period of time. It can combine multiple indicators of CME, 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.
CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois. CME GROUP operates under Financial Exchanges classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4590 people.
CME Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CME. 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 CME 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 CME's important profitability drivers and their relationship over time.
Use CME 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 CME 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 CME will appreciate offsetting losses from the drop in the long position's value.CME Pair Trading
CME Group Pair Trading Analysis
The ability to find closely correlated positions to CME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CME 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 CME - 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 CME Group to buy it.
The correlation of CME 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 CME moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CME Group 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 CME 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 CME position
In addition to having CME 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 Healthcare Funds Thematic Idea Now
Healthcare Funds
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 33 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 Healthcare Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in CME Stock
When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports:Check out Correlation Analysis. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project CME's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CME Group 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 CME's income statement, its balance sheet, and the statement of cash flows.