NEXTDC Return On Asset vs. Cash Per Share
| NXDCF Stock | USD 10.06 0.06 0.60% |
For NEXTDC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NEXTDC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NEXTDC Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NEXTDC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NEXTDC Limited over time as well as its relative position and ranking within its peers.
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NEXTDC Limited Cash Per Share vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NEXTDC's current stock value. Our valuation model uses many indicators to compare NEXTDC value to that of its competitors to determine the firm's financial worth. NEXTDC Limited is considered to be number one stock in return on asset category among its peers. It also is considered to be number one stock in cash per share category among its peers fabricating about 81.97 of Cash Per Share per Return On Asset. 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 NEXTDC's earnings, one of the primary drivers of an investment's value.NEXTDC Cash Per Share 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.
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| = | 0.0122 |
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.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
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Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
NEXTDC Cash Per Share Comparison
NEXTDC is currently under evaluation in cash per share category among its peers.
NEXTDC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NEXTDC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NEXTDC will eventually generate negative long term returns. The profitability progress is the general direction of NEXTDC's change in net profit over the period of time. It can combine multiple indicators of NEXTDC, 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.
NEXTDC Limited, a technology company, provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia. NEXTDC Limited was incorporated in 2010 and is headquartered in Brisbane, Australia. Nextdc operates under Real Estate Services classification in the United States and is traded on OTC Exchange.
NEXTDC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NEXTDC. 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 NEXTDC 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 NEXTDC's important profitability drivers and their relationship over time.
Use NEXTDC 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 NEXTDC 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 NEXTDC will appreciate offsetting losses from the drop in the long position's value.NEXTDC Pair Trading
NEXTDC Limited Pair Trading Analysis
The ability to find closely correlated positions to NEXTDC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NEXTDC 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 NEXTDC - 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 NEXTDC Limited to buy it.
The correlation of NEXTDC 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 NEXTDC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NEXTDC Limited 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 NEXTDC 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 NEXTDC position
In addition to having NEXTDC 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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Other Information on Investing in NEXTDC Pink Sheet
To fully project NEXTDC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NEXTDC Limited 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 NEXTDC's income statement, its balance sheet, and the statement of cash flows.