Northern Ocean Net Income vs. Return On Asset
| NOL Stock | NOK 7.46 0.28 3.62% |
For Northern Ocean profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Northern Ocean to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Northern Ocean utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Northern Ocean's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Northern Ocean over time as well as its relative position and ranking within its peers.
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Northern Ocean Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Northern Ocean's current stock value. Our valuation model uses many indicators to compare Northern Ocean value to that of its competitors to determine the firm's financial worth. Northern Ocean is regarded fourth in net income category among its peers. It is rated below average in return on asset category among its peers . 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 Northern Ocean's earnings, one of the primary drivers of an investment's value.Northern Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Northern Ocean |
| = | (11.03 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Northern Ocean |
| = | -0.0297 |
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.
Northern Return On Asset Comparison
Northern Ocean is rated below average in return on asset category among its peers.
Northern Ocean Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Northern Ocean, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Northern Ocean will eventually generate negative long term returns. The profitability progress is the general direction of Northern Ocean's change in net profit over the period of time. It can combine multiple indicators of Northern Ocean, 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.
Northern Ocean Ltd., together with its subsidiaries, provides offshore contract drilling services for the oil and gas industry worldwide. The company was incorporated in 2017 and is based in Hamilton, Bermuda. NORTHERN OCEAN is traded on Oslo Stock Exchange in Norway.
Northern Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Northern Ocean. 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 Northern Ocean 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 Northern Ocean's important profitability drivers and their relationship over time.
Use Northern Ocean 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 Northern Ocean 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 Northern Ocean will appreciate offsetting losses from the drop in the long position's value.Northern Ocean Pair Trading
Northern Ocean Pair Trading Analysis
The ability to find closely correlated positions to Northern Ocean could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northern Ocean 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 Northern Ocean - 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 Northern Ocean to buy it.
The correlation of Northern Ocean 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 Northern Ocean moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northern Ocean 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 Northern Ocean 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 Northern Ocean position
In addition to having Northern Ocean 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 SRI Sustainable Growth Thematic Idea Now
SRI Sustainable Growth
Socially responsible investments that include companies making a positive, sustainable or social impact and exclude those making a negative impact. The SRI Sustainable Growth theme has 47 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 SRI Sustainable Growth Theme or any other thematic opportunities.
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Other Information on Investing in Northern Stock
To fully project Northern Ocean's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Northern Ocean 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 Northern Ocean's income statement, its balance sheet, and the statement of cash flows.