Williams Sonoma Return On Asset vs. EBITDA

WSM Stock  USD 186.99  5.00  2.75%   
Based on the key profitability measurements obtained from Williams Sonoma's financial statements, Williams Sonoma may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Williams Sonoma's ability to earn profits and add value for shareholders. At this time, Williams Sonoma's Days Sales Outstanding is very stable compared to the past year. As of the 4th of December 2024, Sales General And Administrative To Revenue is likely to grow to 0.21, while EV To Sales is likely to drop 1.48. At this time, Williams Sonoma's Income Quality is very stable compared to the past year. As of the 4th of December 2024, Net Income Per E B T is likely to grow to 0.76, while Total Other Income Expense Net is likely to drop about 27.7 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.390.4262
Significantly Down
Pretty Stable
Net Profit Margin0.10.1225
Significantly Down
Slightly volatile
Operating Profit Margin0.130.1605
Significantly Down
Slightly volatile
Pretax Profit Margin0.130.1643
Significantly Down
Slightly volatile
Return On Assets0.150.1801
Significantly Down
Slightly volatile
Return On Equity0.410.4463
Significantly Down
Slightly volatile
For Williams Sonoma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Williams Sonoma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Williams Sonoma utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Williams Sonoma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Williams Sonoma over time as well as its relative position and ranking within its peers.
  

Williams Sonoma's Revenue Breakdown by Earning Segment

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To learn how to invest in Williams Stock, please use our How to Invest in Williams Sonoma guide.
Is Homefurnishing Retail 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 Williams Sonoma. If investors know Williams 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 Williams Sonoma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.115
Earnings Share
8.46
Revenue Per Share
59.086
Quarterly Revenue Growth
(0.04)
Return On Assets
0.178
The market value of Williams Sonoma is measured differently than its book value, which is the value of Williams that is recorded on the company's balance sheet. Investors also form their own opinion of Williams Sonoma's value that differs from its market value or its book value, called intrinsic value, which is Williams Sonoma'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 Williams Sonoma's market value can be influenced by many factors that don't directly affect Williams Sonoma'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 Williams Sonoma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Williams Sonoma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Williams Sonoma'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.

Williams Sonoma EBITDA vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Williams Sonoma's current stock value. Our valuation model uses many indicators to compare Williams Sonoma value to that of its competitors to determine the firm's financial worth.
Williams Sonoma is rated first in return on asset category among its peers. It is rated third in ebitda category among its peers totaling about  8,377,994,382  of EBITDA per Return On Asset. At this time, Williams Sonoma's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Williams Sonoma by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Williams EBITDA 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.

Williams Sonoma

Return On Asset

 = 

Net Income

Total Assets

 = 
0.18
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Williams Sonoma

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.49 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Williams EBITDA Comparison

Williams Sonoma is currently under evaluation in ebitda category among its peers.

Williams Sonoma Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Williams Sonoma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Williams Sonoma will eventually generate negative long term returns. The profitability progress is the general direction of Williams Sonoma's change in net profit over the period of time. It can combine multiple indicators of Williams Sonoma, 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-15.6 M-16.3 M
Operating Income1.2 B1.3 B
Income Before Tax1.3 B1.3 B
Total Other Income Expense Net29.2 M27.7 M
Net Income949.8 M997.3 M
Income Tax Expense323.6 M339.8 M
Net Income Applicable To Common Shares1.3 B1.4 B
Net Income From Continuing Ops949.8 M528.9 M
Interest Income2.6 M2.5 M
Net Interest Income29.2 M30.6 M
Change To Netincome106.1 M69.2 M
Net Income Per Share 7.35  4.41 
Income Quality 1.77  1.87 
Net Income Per E B T 0.75  0.76 

Williams Profitability Driver Comparison

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

Use Williams Sonoma 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 Williams Sonoma 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 Williams Sonoma will appreciate offsetting losses from the drop in the long position's value.

Williams Sonoma Pair Trading

Williams Sonoma Pair Trading Analysis

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

In addition to having Williams Sonoma 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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When determining whether Williams Sonoma is a strong investment it is important to analyze Williams Sonoma's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Williams Sonoma's future performance. For an informed investment choice regarding Williams Stock, refer to the following important reports:
Check out Your Current Watchlist.
To learn how to invest in Williams Stock, please use our How to Invest in Williams Sonoma guide.
You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Williams Sonoma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Williams Sonoma 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 Williams Sonoma's income statement, its balance sheet, and the statement of cash flows.
Potential Williams Sonoma investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Williams Sonoma investors may work on each financial statement separately, they are all related. The changes in Williams Sonoma's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Williams Sonoma'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.