Arthur Operating Income vs Interest Expense Analysis

AJG Stock

USD 233.99 3.47 1.51%

Arthur J financial indicator trend analysis is way more than just evaluating Arthur J Gallagher prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Arthur J Gallagher is a good investment. Please check the relationship between Arthur J Operating Income and its Interest Expense accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arthur J Gallagher. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.

Operating Income vs Interest Expense

Operating Income vs Interest Expense Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Arthur J Gallagher Operating Income account and Interest Expense. At this time, the significance of the direction appears to have strong contrarian relationship.

The correlation between Arthur J's Operating Income and Interest Expense is -0.55. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Interest Expense in the same time period over historical financial statements of Arthur J Gallagher, assuming nothing else is changed. The correlation between historical values of Arthur J's Operating Income and Interest Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Arthur J Gallagher are associated (or correlated) with its Interest Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Interest Expense has no effect on the direction of Operating Income i.e., Arthur J's Operating Income and Interest Expense go up and down completely randomly.

Correlation Coefficient

-0.55

Relationship Direction	Negative
Relationship Strength	Very Weak

View All Relationships

Operating Income

Operating Income is the amount of profit realized from Arthur J Gallagher operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Arthur J Gallagher is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Most indicators from Arthur J's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Arthur J Gallagher current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arthur J Gallagher. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.

At this time, Arthur J's Tax Provision is most likely to increase significantly in the upcoming years. The Arthur J's current Enterprise Value is estimated to increase to about 3.9 B, while Selling General Administrative is projected to decrease to roughly 128.5 M.

	2021	2022	2023	2024 (projected)
Total Operating Expenses	1.6B	1.9B	135.3M	128.5M
Cost Of Revenue	5.2B	5.0B	1.8B	1.6B

Total Operating Expenses Cost Of Revenue

Arthur J fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Good Will	Common Stock Shares Outstanding	Non Current Liabilities Total	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Intangible Assets	Accounts Payable	Common Stock Total Equity	Common Stock	Other Liab
Total Assets		0.98	0.82	0.99	0.99	0.94	0.98	0.99	0.74	0.98	0.96	0.74	0.51	0.99	0.5	0.98	0.32	0.96	1.0	0.96	0.99	0.98	0.45	0.61	0.58	0.96
Short Long Term Debt Total	0.98		0.74	0.95	0.99	0.98	1.0	0.98	0.77	1.0	0.99	0.77	0.56	0.99	0.62	1.0	0.47	0.98	0.97	0.93	0.95	0.99	0.51	0.7	0.69	0.98
Other Current Liab	0.82	0.74		0.87	0.74	0.68	0.72	0.75	0.77	0.74	0.7	0.77	-0.04	0.76	0.1	0.73	-0.24	0.7	0.84	0.92	0.86	0.76	-0.13	0.26	0.19	0.7
Total Current Liabilities	0.99	0.95	0.87		0.96	0.91	0.95	0.97	0.72	0.96	0.93	0.72	0.46	0.97	0.42	0.95	0.23	0.93	1.0	0.96	1.0	0.95	0.39	0.54	0.5	0.93
Total Stockholder Equity	0.99	0.99	0.74	0.96		0.96	0.99	0.99	0.74	1.0	0.99	0.74	0.59	1.0	0.61	1.0	0.45	0.99	0.98	0.92	0.97	0.99	0.53	0.7	0.68	0.99
Property Plant And Equipment Net	0.94	0.98	0.68	0.91	0.96		0.98	0.97	0.76	0.97	0.97	0.76	0.59	0.96	0.61	0.97	0.49	0.94	0.93	0.91	0.91	0.94	0.53	0.68	0.66	0.96
Net Debt	0.98	1.0	0.72	0.95	0.99	0.98		0.98	0.73	1.0	0.99	0.73	0.6	0.99	0.61	1.0	0.49	0.98	0.97	0.92	0.95	0.99	0.55	0.69	0.68	0.98
Retained Earnings	0.99	0.98	0.75	0.97	0.99	0.97	0.98		0.71	0.98	0.97	0.71	0.6	0.99	0.55	0.98	0.42	0.96	0.98	0.93	0.98	0.96	0.54	0.64	0.61	0.96
Cash	0.74	0.77	0.77	0.72	0.74	0.76	0.73	0.71		0.76	0.79	1.0	0.03	0.75	0.5	0.76	0.13	0.75	0.74	0.83	0.72	0.74	-0.01	0.6	0.58	0.77
Non Current Assets Total	0.98	1.0	0.74	0.96	1.0	0.97	1.0	0.98	0.76		0.99	0.76	0.58	1.0	0.62	1.0	0.46	0.99	0.97	0.92	0.96	0.99	0.53	0.71	0.69	0.99
Non Currrent Assets Other	0.96	0.99	0.7	0.93	0.99	0.97	0.99	0.97	0.79	0.99		0.79	0.58	0.99	0.67	0.99	0.5	0.99	0.95	0.91	0.93	0.98	0.53	0.75	0.74	0.99
Cash And Short Term Investments	0.74	0.77	0.77	0.72	0.74	0.76	0.73	0.71	1.0	0.76	0.79		0.03	0.75	0.5	0.76	0.13	0.75	0.74	0.83	0.72	0.74	-0.01	0.6	0.58	0.77
Net Receivables	0.51	0.56	-0.04	0.46	0.59	0.59	0.6	0.6	0.03	0.58	0.58	0.03		0.57	0.63	0.58	0.85	0.6	0.49	0.29	0.47	0.53	0.99	0.58	0.62	0.59
Good Will	0.99	0.99	0.76	0.97	1.0	0.96	0.99	0.99	0.75	1.0	0.99	0.75	0.57		0.6	0.99	0.43	0.99	0.98	0.93	0.97	0.99	0.51	0.69	0.67	0.99
Common Stock Shares Outstanding	0.5	0.62	0.1	0.42	0.61	0.61	0.61	0.55	0.5	0.62	0.67	0.5	0.63	0.6		0.62	0.75	0.67	0.47	0.38	0.43	0.59	0.62	0.98	0.99	0.66
Non Current Liabilities Total	0.98	1.0	0.73	0.95	1.0	0.97	1.0	0.98	0.76	1.0	0.99	0.76	0.58	0.99	0.62		0.48	0.99	0.97	0.92	0.95	0.99	0.53	0.71	0.69	0.99
Other Current Assets	0.32	0.47	-0.24	0.23	0.45	0.49	0.49	0.42	0.13	0.46	0.5	0.13	0.85	0.43	0.75	0.48		0.51	0.29	0.13	0.24	0.42	0.88	0.67	0.74	0.5
Other Stockholder Equity	0.96	0.98	0.7	0.93	0.99	0.94	0.98	0.96	0.75	0.99	0.99	0.75	0.6	0.99	0.67	0.99	0.51		0.95	0.89	0.93	0.98	0.55	0.75	0.74	0.99
Total Liab	1.0	0.97	0.84	1.0	0.98	0.93	0.97	0.98	0.74	0.97	0.95	0.74	0.49	0.98	0.47	0.97	0.29	0.95		0.96	1.0	0.97	0.42	0.58	0.55	0.95
Property Plant And Equipment Gross	0.96	0.93	0.92	0.96	0.92	0.91	0.92	0.93	0.83	0.92	0.91	0.83	0.29	0.93	0.38	0.92	0.13	0.89	0.96		0.96	0.92	0.21	0.5	0.46	0.9
Total Current Assets	0.99	0.95	0.86	1.0	0.97	0.91	0.95	0.98	0.72	0.96	0.93	0.72	0.47	0.97	0.43	0.95	0.24	0.93	1.0	0.96		0.95	0.4	0.54	0.5	0.93
Intangible Assets	0.98	0.99	0.76	0.95	0.99	0.94	0.99	0.96	0.74	0.99	0.98	0.74	0.53	0.99	0.59	0.99	0.42	0.98	0.97	0.92	0.95		0.48	0.69	0.67	0.98
Accounts Payable	0.45	0.51	-0.13	0.39	0.53	0.53	0.55	0.54	-0.01	0.53	0.53	-0.01	0.99	0.51	0.62	0.53	0.88	0.55	0.42	0.21	0.4	0.48		0.56	0.61	0.54
Common Stock Total Equity	0.61	0.7	0.26	0.54	0.7	0.68	0.69	0.64	0.6	0.71	0.75	0.6	0.58	0.69	0.98	0.71	0.67	0.75	0.58	0.5	0.54	0.69	0.56		0.99	0.74
Common Stock	0.58	0.69	0.19	0.5	0.68	0.66	0.68	0.61	0.58	0.69	0.74	0.58	0.62	0.67	0.99	0.69	0.74	0.74	0.55	0.46	0.5	0.67	0.61	0.99		0.73
Other Liab	0.96	0.98	0.7	0.93	0.99	0.96	0.98	0.96	0.77	0.99	0.99	0.77	0.59	0.99	0.66	0.99	0.5	0.99	0.95	0.9	0.93	0.98	0.54	0.74	0.73

Click cells to compare fundamentals

Arthur J Account Relationship Matchups

Arthur J fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	19.6B	22.3B	33.3B	38.9B	51.6B	54.2B
Short Long Term Debt Total	4.9B	4.9B	6.6B	6.4B	8.3B	8.7B
Other Current Liab	1.3B	1.6B	1.9B	2.1B	26.9B	28.3B
Total Current Liabilities	8.9B	10.1B	16.7B	21.9B	31.1B	32.6B
Total Stockholder Equity	5.2B	6.2B	8.5B	9.1B	10.8B	11.3B
Property Plant And Equipment Net	860.9M	824.6M	859.4M	922.9M	1.1B	1.2B
Net Debt	4.3B	4.2B	6.2B	6.1B	7.3B	7.7B
Retained Earnings	1.9B	2.4B	2.9B	3.6B	4.1B	4.3B
Cash	604.8M	664.6M	402.6M	342.3M	971.5M	1.0B
Non Current Assets Total	10.5B	11.2B	15.7B	16.1B	19.5B	20.5B
Non Currrent Assets Other	728.2M	747.5M	963.1M	918.7M	1.1B	1.2B
Cash And Short Term Investments	604.8M	664.6M	402.6M	342.3M	971.5M	1.0B
Net Receivables	5.4B	6.4B	11.8B	16.4B	3.8B	2.2B
Good Will	5.6B	6.1B	8.7B	9.5B	11.5B	12.0B
Common Stock Shares Outstanding	190.1M	195M	207.3M	214.7M	219.3M	119.7M
Liabilities And Stockholders Equity	19.6B	22.3B	33.3B	38.9B	51.6B	54.2B
Non Current Liabilities Total	5.5B	6.0B	8.0B	7.8B	9.7B	10.2B
Other Current Assets	1.1B	1.1B	1.5B	1.5B	281M	385.0M
Other Stockholder Equity	3.8B	4.3B	6.1B	6.5B	7.3B	7.7B
Total Liab	14.4B	16.1B	24.8B	29.7B	40.8B	42.8B
Property Plant And Equipment Gross	860.9M	824.6M	859.4M	922.9M	2.2B	2.3B
Total Current Assets	9.1B	11.1B	17.7B	22.8B	32.1B	33.7B
Accumulated Other Comprehensive Income	(759.6M)	(643.6M)	(726.1M)	(1.1B)	(792.1M)	(752.5M)
Intangible Assets	2.3B	2.4B	4.0B	3.4B	4.6B	4.9B
Accounts Payable	6.3B	7.8B	13.8B	18.7B	2.6B	3.0B
Common Stock Total Equity	188.1M	193.7M	208.5M	211.9M	243.7M	143.3M
Common Stock	188.1M	193.7M	208.5M	211.9M	216.7M	147.1M
Other Liab	1.3B	1.4B	1.9B	2.0B	2.3B	2.4B
Other Assets	1.7B	2.2M	2.2B	2.3B	2.6B	2.8B
Property Plant Equipment	467.4M	450.7M	859.4M	922.9M	1.1B	1.1B
Inventory	2.0B	2.9B	4.1B	4.6B	27.1B	28.4B
Current Deferred Revenue	434.1M	475.6M	520.9M	546.7M	644.7M	676.9M
Long Term Debt	3.8B	4.3B	5.8B	5.6B	7.0B	7.4B
Short Term Debt	790.6M	278.6M	473.4M	551.9M	959M	1.0B
Net Tangible Assets	(2.8B)	(2.3B)	(4.1B)	(3.7B)	(3.3B)	(3.2B)
Noncontrolling Interest In Consolidated Entity	60M	46.5M	51.7M	46.6M	53.6M	37.6M
Retained Earnings Total Equity	1.9B	2.4B	2.9B	3.6B	4.1B	4.3B
Long Term Debt Total	3.8B	4.3B	5.8B	5.6B	6.4B	6.7B
Capital Surpluse	3.8B	4.3B	6.1B	6.5B	7.5B	7.9B

Pair Trading with Arthur J

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 Arthur J 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 Arthur J will appreciate offsetting losses from the drop in the long position's value.

Moving together with Arthur Stock

0.77	ERIE	Erie Indemnity Earnings Call This Week	Pair Corr
0.8	AON	Aon PLC Earnings Call This Week	Pair Corr

Moving against Arthur Stock

0.7	ALIZY	Allianz SE ADR	Pair Corr
0.45	DHIL	Diamond Hill Investment	Pair Corr

The ability to find closely correlated positions to Arthur J could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arthur J 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 Arthur J - 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 Arthur J Gallagher to buy it.

The correlation of Arthur J 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 Arthur J moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arthur J Gallagher 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 Arthur J 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 Correlation Correlation Matching

When determining whether Arthur J Gallagher is a strong investment it is important to analyze Arthur J'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 Arthur J's future performance. For an informed investment choice regarding Arthur Stock, refer to the following important reports:

How To Invest In Arthur

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Is Arthur Stock a good investment?

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What is Arthur J's Net Worth?

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arthur J Gallagher. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.

You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Complementary Tools for Arthur Stock analysis

When running Arthur J's price analysis, check to measure Arthur J'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 Arthur J is operating at the current time. Most of Arthur J's value examination focuses on studying past and present price action to predict the probability of Arthur J's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arthur J's price. Additionally, you may evaluate how the addition of Arthur J to your portfolios can decrease your overall portfolio volatility.

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Is Arthur J'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 Arthur J. If investors know Arthur 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 Arthur J 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

0.076

Dividend Share

2.2

Earnings Share

4.43

Revenue Per Share

44.482

Quarterly Revenue Growth

0.18

The market value of Arthur J Gallagher is measured differently than its book value, which is the value of Arthur that is recorded on the company's balance sheet. Investors also form their own opinion of Arthur J's value that differs from its market value or its book value, called intrinsic value, which is Arthur J'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 Arthur J's market value can be influenced by many factors that don't directly affect Arthur J'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 Arthur J's value and its price as these two are different measures arrived at by different means. Investors typically determine if Arthur J is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arthur J'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.

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Arthur Operating Income vs Interest Expense Analysis

Operating Income vs Interest Expense

Operating Income vs Interest Expense Correlation Analysis

Correlation Coefficient

Operating Income

Interest Expense

Arthur J fundamental ratios Correlations

Arthur J Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Arthur J fundamental ratios Accounts

Pair Trading with Arthur J

Moving together with Arthur Stock

Moving against Arthur Stock

Complementary Tools for Arthur Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Total Liab	+ 1.0	Total Assets
Net Debt	+ 1.0	Short Long Term Debt Total
Non Current Assets Total	+ 1.0	Short Long Term Debt Total
Non Current Liabilities Total	+ 1.0	Short Long Term Debt Total
Total Liab	+ 1.0	Total Current Liabilities
Total Current Assets	+ 1.0	Total Current Liabilities

Other Current Assets	- 0.24	Other Current Liab
Accounts Payable	- 0.13	Other Current Liab
Net Receivables	- 0.04	Other Current Liab
Accounts Payable	- 0.01	Cash And Short Term Investments
Accounts Payable	- 0.01	Cash