ALASKA AIR Profit Margin vs. Return On Asset

For ALASKA AIR profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ALASKA AIR to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ALASKA AIR GDRN utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ALASKA AIR's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ALASKA AIR GDRN over time as well as its relative position and ranking within its peers. Check out Trending Equities.
  
Please note, there is a significant difference between ALASKA AIR's value and its price as these two are different measures arrived at by different means. Investors typically determine ALASKA AIR value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ALASKA AIR'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.

ALASKA AIR GDRN Return On Asset vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ALASKA AIR's current stock value. Our valuation model uses many indicators to compare ALASKA AIR value to that of its competitors to determine the firm's financial worth.
ALASKA AIR GDRN is number one stock in profit margin category among related companies. It is number one stock in return on asset category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value ALASKA AIR by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ALASKA AIR'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 ALASKA AIR's earnings, one of the primary drivers of an investment's value.

ALASKA Return On Asset vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
ALASKA AIR 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
(44.85) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.
ALASKA AIR 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
(9.63) %
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.

ALASKA AIR Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ALASKA AIR, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ALASKA AIR will eventually generate negative long term returns. The profitability progress is the general direction of ALASKA AIR's change in net profit over the period of time. It can combine multiple indicators of ALASKA AIR, 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.
Alaska Air Group, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company was founded in 1932 and is based in Seattle, Washington. ALASKA AIR operates under Airlines classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 17140 people.

ALASKA Profitability Driver Comparison

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

Use ALASKA AIR 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 ALASKA AIR 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 ALASKA AIR will appreciate offsetting losses from the drop in the long position's value.

ALASKA AIR Pair Trading

ALASKA AIR GDRN Pair Trading Analysis

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

In addition to having ALASKA AIR 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 Soft Drinks Thematic Idea Now

Soft Drinks
Soft Drinks Theme
Entities manufacturing and distributing non alcoholic beverages across different markets. The Soft Drinks theme has 40 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 Soft Drinks Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the ALASKA AIR GDRN information on this page should be used as a complementary analysis to other ALASKA AIR'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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Tools for ALASKA Stock

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