Thomson Reuters Return On Asset vs. Return On Equity

TRI Stock  CAD 241.65  4.40  1.85%   
Based on Thomson Reuters' profitability indicators, Thomson Reuters Corp is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Thomson Reuters' ability to earn profits and add value for shareholders. At this time, Thomson Reuters' Price To Sales Ratio is very stable compared to the past year. As of the 8th of December 2024, Days Sales Outstanding is likely to grow to 70.53, while Sales General And Administrative To Revenue is likely to drop 0.03. At this time, Thomson Reuters' Income Tax Expense is very stable compared to the past year. As of the 8th of December 2024, Net Income Applicable To Common Shares is likely to grow to about 2.4 B, while Accumulated Other Comprehensive Income is likely to drop (1.1 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.3973
Way Down
Slightly volatile
For Thomson Reuters profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Thomson Reuters to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Thomson Reuters Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Thomson Reuters's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Thomson Reuters Corp over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Thomson Reuters' value and its price as these two are different measures arrived at by different means. Investors typically determine if Thomson Reuters is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Thomson Reuters' 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.

Thomson Reuters Corp Return On Equity vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Thomson Reuters's current stock value. Our valuation model uses many indicators to compare Thomson Reuters value to that of its competitors to determine the firm's financial worth.
Thomson Reuters Corp is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about  3.07  of Return On Equity per Return On Asset. At this time, Thomson Reuters' Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Thomson Reuters by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Thomson Reuters' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Thomson Return On Equity 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.

Thomson Reuters

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0631
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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Thomson Reuters

Return On Equity

 = 

Net Income

Total Equity

 = 
0.19
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Thomson Return On Equity Comparison

Thomson Reuters is currently under evaluation in return on equity category among its peers.

Thomson Reuters Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Thomson Reuters, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Thomson Reuters will eventually generate negative long term returns. The profitability progress is the general direction of Thomson Reuters' change in net profit over the period of time. It can combine multiple indicators of Thomson Reuters, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1 B-1.1 B
Operating Income2.3 B1.5 B
Income Before TaxB1.2 B
Total Other Income Expense Net-344 M-361.2 M
Net Income2.6 B1.4 B
Income Tax Expense417 M437.9 M
Net Income From Continuing Ops2.6 B1.8 B
Net Income Applicable To Common Shares1.5 B2.4 B
Interest Income85 M80.8 M
Net Interest Income-147 M-154.3 M
Change To Netincome-139.5 M-146.5 M
Net Income Per Share 5.82  6.11 
Income Quality 0.88  1.76 
Net Income Per E B T 0.88  1.13 

Thomson Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Thomson Reuters. 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 Thomson Reuters 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 Thomson Reuters' important profitability drivers and their relationship over time.

Use Thomson Reuters 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 Thomson Reuters 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 Thomson Reuters will appreciate offsetting losses from the drop in the long position's value.

Thomson Reuters Pair Trading

Thomson Reuters Corp Pair Trading Analysis

The ability to find closely correlated positions to Thomson Reuters could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Thomson Reuters 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 Thomson Reuters - 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 Thomson Reuters Corp to buy it.
The correlation of Thomson Reuters 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 Thomson Reuters moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Thomson Reuters 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 Thomson Reuters 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Thomson Reuters position

In addition to having Thomson Reuters 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.

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Latest Losers Theme
Dynamically computed list of top equities currently sorted across major exchanges. The Latest Losers theme has 257 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 Latest Losers Theme or any other thematic opportunities.
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When determining whether Thomson Reuters Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Thomson Reuters' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Thomson Reuters Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Thomson Reuters Corp Stock:
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You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
To fully project Thomson Reuters' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Thomson Reuters 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 Thomson Reuters' income statement, its balance sheet, and the statement of cash flows.
Potential Thomson Reuters investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Thomson Reuters investors may work on each financial statement separately, they are all related. The changes in Thomson Reuters's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Thomson Reuters's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.