Zip Co Net Income vs. Operating Margin
| ZIP Stock | 3.41 0.02 0.58% |
Net Income | First Reported 2003-12-31 | Previous Quarter 73 M | Current Value -61.8 M | Quarterly Volatility 124.3 M |
For Zip Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Zip Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Zip Co Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Zip Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Zip Co Limited over time as well as its relative position and ranking within its peers.
Zip |
Zip Co Limited Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Zip Co's current stock value. Our valuation model uses many indicators to compare Zip Co value to that of its competitors to determine the firm's financial worth. Zip Co Limited is rated first in net income category among its peers. It is rated first in operating margin category among its peers . The ratio of Net Income to Operating Margin for Zip Co Limited is about 12,447,243 . At this time, Zip Co's Net Income is comparatively stable compared to the past year. 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 Zip Co's earnings, one of the primary drivers of an investment's value.Zip Operating Margin 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.
Zip Co |
| = | 3.66 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.
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.
Zip Co |
| = | 0.29 % |
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.
Zip Operating Margin Comparison
Zip Co is currently under evaluation in operating margin category among its peers.
Zip Co Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Zip Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Zip Co will eventually generate negative long term returns. The profitability progress is the general direction of Zip Co's change in net profit over the period of time. It can combine multiple indicators of Zip Co, 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 | 319.2 M | 335.1 M | |
| Operating Income | 454.5 M | 477.2 M | |
| Income Before Tax | 25.1 M | 26.4 M | |
| Total Other Income Expense Net | -429.4 M | -407.9 M | |
| Net Income | 3.7 M | 3.8 M | |
| Income Tax Expense | 19.4 M | 20.4 M | |
| Interest Income | 168.3 K | 159.9 K | |
| Net Income From Continuing Ops | 5.7 M | 5.9 M | |
| Net Loss | -339.3 M | -356.3 M | |
| Net Interest Income | -271.3 M | -257.7 M | |
| Change To Netincome | 255.2 M | 158.4 M |
Zip Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Zip Co. 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 Zip Co 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 Zip Co's important profitability drivers and their relationship over time.
Use Zip Co 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 Zip Co 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 Zip Co will appreciate offsetting losses from the drop in the long position's value.Zip Co Pair Trading
Zip Co Limited Pair Trading Analysis
The ability to find closely correlated positions to Zip Co could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zip Co 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 Zip Co - 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 Zip Co Limited to buy it.
The correlation of Zip Co 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 Zip Co moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zip Co 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 Zip Co 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 Zip Co position
In addition to having Zip Co 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 Developed Markets Basket ETFs Thematic Idea Now
Developed Markets Basket ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Developed Markets Basket ETFs theme has 24 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 Developed Markets Basket ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Zip Stock Analysis
When running Zip Co's price analysis, check to measure Zip Co's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zip Co is operating at the current time. Most of Zip Co's value examination focuses on studying past and present price action to predict the probability of Zip Co's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zip Co's price. Additionally, you may evaluate how the addition of Zip Co to your portfolios can decrease your overall portfolio volatility.