Nasdaq Return On Equity vs. Current Ratio
| NDAQ Stock | USD 60.25 0.24 0.40% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.0979105 | Current Value 0.067 | Quarterly Volatility 0.0472468 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.8003 |
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| Net Profit Margin | 0.18 | 0.1746 |
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| Operating Profit Margin | 0.14 | 0.2602 |
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| Pretax Profit Margin | 0.13 | 0.231 |
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| Return On Assets | 0.0436 | 0.0328 |
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| Return On Equity | 0.067 | 0.0979 |
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For Nasdaq profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nasdaq to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nasdaq Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nasdaq's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nasdaq Inc over time as well as its relative position and ranking within its peers.
Nasdaq |
Is Nasdaq's industry 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 Nasdaq. If investors know Nasdaq 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 Nasdaq 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 (0.27) | Dividend Share 0.86 | Earnings Share 2.08 | Revenue Per Share 12.01 | Quarterly Revenue Growth 0.041 |
The market value of Nasdaq Inc is measured differently than its book value, which is the value of Nasdaq that is recorded on the company's balance sheet. Investors also form their own opinion of Nasdaq's value that differs from its market value or its book value, called intrinsic value, which is Nasdaq'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 Nasdaq's market value can be influenced by many factors that don't directly affect Nasdaq'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 Nasdaq's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nasdaq is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nasdaq'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.
Nasdaq Inc Current Ratio vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nasdaq's current stock value. Our valuation model uses many indicators to compare Nasdaq value to that of its competitors to determine the firm's financial worth. Nasdaq Inc is regarded third in return on equity category among related companies. It is regarded fourth in current ratio category among related companies fabricating about 7.72 of Current Ratio per Return On Equity. At this time, Nasdaq's Return On Equity is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Nasdaq by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nasdaq's 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. 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 Nasdaq's earnings, one of the primary drivers of an investment's value.Nasdaq Current Ratio vs. Return On Equity
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.
Nasdaq |
| = | 0.12 |
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.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Nasdaq |
| = | 0.96 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Nasdaq Current Ratio Comparison
Nasdaq is currently under evaluation in current ratio category among related companies.
Nasdaq Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nasdaq, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nasdaq will eventually generate negative long term returns. The profitability progress is the general direction of Nasdaq's change in net profit over the period of time. It can combine multiple indicators of Nasdaq, 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 | -1.9 B | -1.8 B | |
| Operating Income | 1.6 B | 1.7 B | |
| Net Income | 1.1 B | 1.1 B | |
| Income Tax Expense | 344 M | 179.3 M | |
| Income Before Tax | 1.4 B | 1.5 B | |
| Total Other Income Expense Net | -177 M | -168.2 M | |
| Net Income Applicable To Common Shares | 1.3 B | 1.4 B | |
| Net Income From Continuing Ops | 1.1 B | 699.3 M | |
| Non Operating Income Net Other | 46 M | 62.2 M | |
| Interest Income | 90 M | 94.5 M | |
| Net Interest Income | -117 M | -122.8 M | |
| Change To Netincome | 180.6 M | 94.7 M | |
| Net Income Per Share | 2.10 | 2.20 | |
| Income Quality | 0.19 | 0.18 | |
| Net Income Per E B T | 0.76 | 0.92 |
Nasdaq Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nasdaq. 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 Nasdaq 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 Nasdaq's important profitability drivers and their relationship over time.
Use Nasdaq 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 Nasdaq 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 Nasdaq will appreciate offsetting losses from the drop in the long position's value.Nasdaq Pair Trading
Nasdaq Inc Pair Trading Analysis
The ability to find closely correlated positions to Nasdaq could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nasdaq 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 Nasdaq - 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 Nasdaq Inc to buy it.
The correlation of Nasdaq 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 Nasdaq moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nasdaq Inc 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 Nasdaq 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 Nasdaq position
In addition to having Nasdaq 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 Printing and Publishing Thematic Idea Now
Printing and Publishing
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Printing and Publishing theme has 20 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 Printing and Publishing Theme or any other thematic opportunities.
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Check out Correlation Analysis. Note that the Nasdaq Inc information on this page should be used as a complementary analysis to other Nasdaq's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Complementary Tools for Nasdaq Stock analysis
When running Nasdaq's price analysis, check to measure Nasdaq'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 Nasdaq is operating at the current time. Most of Nasdaq's value examination focuses on studying past and present price action to predict the probability of Nasdaq's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nasdaq's price. Additionally, you may evaluate how the addition of Nasdaq to your portfolios can decrease your overall portfolio volatility.
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To fully project Nasdaq's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nasdaq Inc 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 Nasdaq's income statement, its balance sheet, and the statement of cash flows.