Nikola Corp Return On Asset vs. Total Debt
| NKLA Stock | USD 1.59 0.02 1.27% |
For Nikola Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nikola Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nikola Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nikola Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nikola Corp over time as well as its relative position and ranking within its peers.
Nikola |
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nikola Corp. If investors know Nikola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nikola Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (12.34) | Revenue Per Share 1.691 | Quarterly Revenue Growth 1.039 | Return On Assets (0.31) | Return On Equity (1.29) |
The market value of Nikola Corp is measured differently than its book value, which is the value of Nikola that is recorded on the company's balance sheet. Investors also form their own opinion of Nikola Corp's value that differs from its market value or its book value, called intrinsic value, which is Nikola Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nikola Corp's market value can be influenced by many factors that don't directly affect Nikola Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nikola Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nikola Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nikola Corp'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.
Nikola Corp Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nikola Corp's current stock value. Our valuation model uses many indicators to compare Nikola Corp value to that of its competitors to determine the firm's financial worth. Nikola Corp is rated below average in return on asset category among its peers. It is rated below average in total debt category among its peers . As of December 11, 2024, Total Debt To Capitalization is expected to decline to 0.14. 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 Nikola Corp's earnings, one of the primary drivers of an investment's value.Nikola Total Debt 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.
Nikola Corp |
| = | -0.31 |
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.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Nikola Corp |
| = | 284.86 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Nikola Total Debt vs Competition
Nikola Corp is rated below average in total debt category among its peers. Total debt of Industrials industry is now estimated at about 106.25 Billion. Nikola Corp adds roughly 284.86 Million in total debt claiming only tiny portion of equities under Industrials industry.
Nikola Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nikola Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nikola Corp will eventually generate negative long term returns. The profitability progress is the general direction of Nikola Corp's change in net profit over the period of time. It can combine multiple indicators of Nikola Corp, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -162 K | -153.9 K | |
| Net Loss | -705.8 M | -670.5 M | |
| Income Tax Expense | 12 K | 12.6 K | |
| Net Interest Income | -78.2 M | -74.3 M | |
| Interest Income | 181.8 K | 172.7 K | |
| Operating Income | -649.8 M | -682.3 M | |
| Net Loss | -933.1 M | -886.4 M | |
| Income Before Tax | -848.2 M | -805.8 M | |
| Total Other Income Expense Net | -198.4 M | -188.4 M | |
| Net Loss | -864.6 M | -821.4 M | |
| Non Operating Income Net Other | -16 M | -15.2 M | |
| Change To Netincome | 361.3 M | 379.4 M | |
| Net Loss | (36.31) | (38.12) | |
| Income Quality | 0.57 | 0.74 | |
| Net Income Per E B T | 1.14 | 0.80 |
Nikola Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nikola Corp. 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 Nikola Corp 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 Nikola Corp's important profitability drivers and their relationship over time.
Use Nikola Corp 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 Nikola Corp 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 Nikola Corp will appreciate offsetting losses from the drop in the long position's value.Nikola Corp Pair Trading
Nikola Corp Pair Trading Analysis
The ability to find closely correlated positions to Nikola Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nikola Corp 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 Nikola Corp - 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 Nikola Corp to buy it.
The correlation of Nikola Corp 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 Nikola Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nikola Corp 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 Nikola Corp 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 Nikola Corp position
In addition to having Nikola Corp 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?
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Check out Correlation Analysis. For information on how to trade Nikola Stock refer to our How to Trade Nikola Stock guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Nikola Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nikola Corp 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 Nikola Corp's income statement, its balance sheet, and the statement of cash flows.