Arqit Quantum Profitability Analysis

ARQQ
 Stock
  

USD 5.65  0.25  4.63%   

For Arqit Quantum profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arqit Quantum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arqit Quantum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arqit Quantum's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arqit Quantum over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
As of 10th of August 2022, Price to Sales Ratio is likely to drop to about 30.5 K. In addition to that, Return on Sales is likely to drop to -5,486. As of 10th of August 2022, Accumulated Other Comprehensive Income is likely to grow to about 316.7 K, while Consolidated Income is likely to drop (251 M).
Is Arqit Quantum'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 Arqit Quantum. If investors know Arqit 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 Arqit Quantum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
699.9 M
Return On Assets
-0.14
Return On Equity
-0.5
The market value of Arqit Quantum is measured differently than its book value, which is the value of Arqit that is recorded on the company's balance sheet. Investors also form their own opinion of Arqit Quantum's value that differs from its market value or its book value, called intrinsic value, which is Arqit Quantum'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 Arqit Quantum's market value can be influenced by many factors that don't directly affect Arqit Quantum'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 Arqit Quantum's value and its price as these two are different measures arrived at by different means. Investors typically determine Arqit Quantum value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arqit Quantum'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.

Arqit Quantum Total Debt vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Arqit Quantum's current stock value. Our valuation model uses many indicators to compare Arqit Quantum value to that of its competitors to determine the firm's financial worth.
Arqit Quantum is number one stock in gross profit category among related companies. It is the top company in total debt category among related companies making up about  189.52  of Total Debt per Gross Profit. Arqit Quantum Gross Profit is very stable at the moment as compared to the past year. Arqit Quantum reported last year Gross Profit of 43,119. Comparative valuation analysis is a catch-all model that can be used if you cannot value Arqit Quantum by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arqit Quantum'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 Arqit Quantum's earnings, one of the primary drivers of an investment's value.

Arqit Total Debt vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Arqit Quantum 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
47.91 K
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Arqit Quantum 
Total Debt 
 = 
Bonds 
+  
Notes 
9.08 M
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Arqit Total Debt vs Competition

Arqit Quantum is the top company in total debt category among related companies. Total debt of Software—Infrastructure industry is presently estimated at about 756.56 Billion. Arqit Quantum adds roughly 9.08 Million in total debt claiming only tiny portion of equities listed under Software—Infrastructure industry.
Total debt  Valuation  Revenue  Workforce  Capitalization

Arqit Quantum Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Arqit Quantum, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arqit Quantum will eventually generate negative long term returns. The profitability progress is the general direction of Arqit Quantum's change in net profit over the period of time. It can combine multiple indicators of Arqit Quantum, 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 2022
Accumulated Other Comprehensive Income293.5 K316.7 K
Consolidated Income-244.6 M-251 M
Net Income-244.6 M-251 M
Net Income Common Stock-244.6 M-251 M
Operating Income-155.3 M-159.4 M
Income Tax Expense-511.7 K-552.1 K
Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud that enables any device to download a lightweight software agent, which can create encryption keys in partnership with any other device. Arqit Quantum operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 74 people.

Arqit Profitability Driver Comparison

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

Arqit Quantum Profitability Trends

Arqit Quantum profitability trend refers to the progression of profit or loss within a business. An upward trend means that Arqit Quantum'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 Arqit Quantum'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.

Arqit Quantum 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 Arqit Quantum different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Arqit Quantum 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 Arqit Quantum's future profitability.

Use Arqit Quantum 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 Arqit Quantum 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 Arqit Quantum will appreciate offsetting losses from the drop in the long position's value.

Arqit Quantum Pair Trading

Arqit Quantum Pair Trading Analysis

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

In addition to having Arqit Quantum 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.

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Natural Foods
Natural Foods Theme
Companies producing natural foods including dairy products and different types of meets. The Natural Foods 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 Natural Foods Theme or any other thematic opportunities.
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Please continue to Trending Equities. Note that the Arqit Quantum information on this page should be used as a complementary analysis to other Arqit Quantum'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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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To fully project Arqit Quantum's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arqit Quantum 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 Arqit Quantum's income statement, its balance sheet, and the statement of cash flows.
Potential Arqit Quantum investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Arqit Quantum investors may work on each financial statement separately, they are all related. The changes in Arqit Quantum's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Arqit Quantum'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.