Oxford Lane Profitability Analysis

OXLCL Stock  USD 23.50  0.08  0.34%   
Based on the measurements of profitability obtained from Oxford Lane's financial statements, Oxford Lane's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Oxford Lane's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2013-06-30
Previous Quarter
217.9 M
Current Value
65.6 M
Quarterly Volatility
105.8 M
 
Yuan Drop
 
Covid
The value of Price To Sales Ratio is estimated to slide to 3.48. The value of Days Sales Outstanding is estimated to slide to 33.96. At this time, Oxford Lane's Operating Income is quite stable compared to the past year. Income Before Tax is expected to rise to about 246.9 M this year, although the value of Total Other Income Expense Net is projected to rise to (31.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.7334
Notably Up
Very volatile
Net Profit Margin0.780.8089
Sufficiently Down
Very volatile
Operating Profit Margin0.660.922
Way Down
Slightly volatile
Pretax Profit Margin0.780.8089
Sufficiently Down
Very volatile
For Oxford Lane profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Oxford Lane to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Oxford Lane Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Oxford Lane's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Oxford Lane Capital over time as well as its relative position and ranking within its peers.
  
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Is Stock 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 Oxford Lane. If investors know Oxford 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 Oxford Lane listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Equity
0.6703
The market value of Oxford Lane Capital is measured differently than its book value, which is the value of Oxford that is recorded on the company's balance sheet. Investors also form their own opinion of Oxford Lane's value that differs from its market value or its book value, called intrinsic value, which is Oxford Lane'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 Oxford Lane's market value can be influenced by many factors that don't directly affect Oxford Lane'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 Oxford Lane's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oxford Lane is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oxford Lane'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.

Oxford Lane Capital Number Of Shares Shorted vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Oxford Lane's current stock value. Our valuation model uses many indicators to compare Oxford Lane value to that of its competitors to determine the firm's financial worth.
Oxford Lane Capital is considered to be number one stock in return on equity category among its peers. It is rated below average in number of shares shorted category among its peers making about  4,380  of Number Of Shares Shorted per Return On Equity. At this time, Oxford Lane's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Oxford Lane 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.

Oxford Number Of Shares Shorted 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.

Oxford Lane

Return On Equity

 = 

Net Income

Total Equity

 = 
0.67
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.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.

Oxford Lane

Shares Shorted

 = 

Shorted by Public

+

by Institutions

 = 
2.94 K
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.

Oxford Number Of Shares Shorted Comparison

Oxford Lane is currently under evaluation in number of shares shorted category among its peers.

Oxford Lane Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Oxford Lane, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Oxford Lane will eventually generate negative long term returns. The profitability progress is the general direction of Oxford Lane's change in net profit over the period of time. It can combine multiple indicators of Oxford Lane, 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-51.9 M-54.5 M
Operating Income268 M281.4 M
Income Before Tax235.1 M246.9 M
Total Other Income Expense Net-32.9 M-31.2 M
Net Income235.1 M246.9 M
Income Tax Expense-33 M-31.4 M
Interest Income245.5 M159.5 M
Net Income Applicable To Common Shares333.4 M350.1 M
Net Income Per Share 1.12  1.18 
Income Quality(0.53)(0.55)

Oxford Profitability Driver Comparison

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

Oxford Lane Profitability Trends

Oxford Lane profitability trend refers to the progression of profit or loss within a business. An upward trend means that Oxford Lane's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Oxford Lane's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Oxford Lane Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Oxford Lane different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Oxford Lane in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Oxford Lane's future profitability.

Use Oxford Lane 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 Oxford Lane 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 Oxford Lane will appreciate offsetting losses from the drop in the long position's value.

Oxford Lane Pair Trading

Oxford Lane Capital Pair Trading Analysis

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

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When determining whether Oxford Lane Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Oxford Lane's 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 Oxford Lane Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Oxford Lane Capital Stock:
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You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
To fully project Oxford Lane's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Oxford Lane Capital 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 Oxford Lane's income statement, its balance sheet, and the statement of cash flows.
Potential Oxford Lane investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Oxford Lane investors may work on each financial statement separately, they are all related. The changes in Oxford Lane's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Oxford Lane'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.