Tata Consultancy Profit Margin vs. Operating Margin
| TCS Stock | 4,170 101.60 2.38% |
For Tata Consultancy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tata Consultancy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tata Consultancy Services utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tata Consultancy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tata Consultancy Services over time as well as its relative position and ranking within its peers.
Tata |
Tata Consultancy Services Operating Margin vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Tata Consultancy's current stock value. Our valuation model uses many indicators to compare Tata Consultancy value to that of its competitors to determine the firm's financial worth. Tata Consultancy Services is currently regarded as top stock in profit margin category among its peers. It also is currently regarded as top stock in operating margin category among its peers reporting about 1.26 of Operating Margin per Profit Margin. 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 Tata Consultancy's earnings, one of the primary drivers of an investment's value.Tata Operating Margin vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Tata Consultancy |
| = | 0.19 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.
Tata Consultancy |
| = | 0.24 % |
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.
Tata Operating Margin Comparison
Tata Consultancy is currently under evaluation in operating margin category among its peers.
Tata Consultancy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Tata Consultancy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tata Consultancy will eventually generate negative long term returns. The profitability progress is the general direction of Tata Consultancy's change in net profit over the period of time. It can combine multiple indicators of Tata Consultancy, 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 | 37 B | 38.9 B | |
| Operating Income | 935.3 B | 982 B | |
| Income Before Tax | 620 B | 651 B | |
| Total Other Income Expense Net | -315.3 B | -299.5 B | |
| Net Income Applicable To Common Shares | 484.7 B | 508.9 B | |
| Net Income | 459.1 B | 238.3 B | |
| Income Tax Expense | 159 B | 166.9 B | |
| Net Income From Continuing Ops | 461 B | 339.4 B | |
| Interest Income | 37.8 B | 23.1 B | |
| Net Interest Income | -7.8 B | -7.4 B | |
| Change To Netincome | -2.4 B | -2.6 B |
Tata Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Tata Consultancy. 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 Tata Consultancy 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 Tata Consultancy's important profitability drivers and their relationship over time.
Use Tata Consultancy 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 Tata Consultancy 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 Tata Consultancy will appreciate offsetting losses from the drop in the long position's value.Tata Consultancy Pair Trading
Tata Consultancy Services Pair Trading Analysis
The ability to find closely correlated positions to Tata Consultancy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tata Consultancy 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 Tata Consultancy - 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 Tata Consultancy Services to buy it.
The correlation of Tata Consultancy 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 Tata Consultancy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tata Consultancy Services 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 Tata Consultancy 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 Tata Consultancy position
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Other Information on Investing in Tata Stock
To fully project Tata Consultancy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tata Consultancy Services 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 Tata Consultancy's income statement, its balance sheet, and the statement of cash flows.