Carvana Co Working Capital vs. Current Asset

CVNA
 Stock
  

USD 26.30  1.28  4.64%   

For Carvana Co profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Carvana Co to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Carvana Co Cl utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Carvana Co's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Carvana Co Cl over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
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The current year Price to Sales Ratio is expected to grow to 3.89. The current year Return on Sales is expected to grow to 0.003237. As of July 6, 2022, Consolidated Income is expected to decline to about (309.7 M). In addition to that, Net Income is expected to decline to about (145.7 M).

Carvana Co Working Capital

2.16 Billion

Is Carvana Co'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 Carvana Co. If investors know Carvana 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 Carvana Co listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
4.9 B
Quarterly Revenue Growth YOY
0.56
Return On Assets
-0.0489
Return On Equity
-1.84
The market value of Carvana Co Cl is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana Co's value that differs from its market value or its book value, called intrinsic value, which is Carvana Co'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 Carvana Co's market value can be influenced by many factors that don't directly affect Carvana Co'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 Carvana Co's value and its price as these two are different measures arrived at by different means. Investors typically determine Carvana Co value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana Co'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.

Carvana Co Cl Current Asset vs. Working Capital Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Carvana Co's current stock value. Our valuation model uses many indicators to compare Carvana Co value to that of its competitors to determine the firm's financial worth.
Carvana Co Cl is number one stock in working capital category among related companies. It is number one stock in current asset category among related companies fabricating about  2.10  of Current Asset per Working Capital. Carvana Co Working Capital is projected to increase significantly based on the last few years of reporting. The past year's Working Capital was at 2 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Carvana Co by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Carvana Co'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 Carvana Co's earnings, one of the primary drivers of an investment's value.

Carvana Current Asset vs. Working Capital

Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
Carvana Co 
Working Capital 
 = 
Current Assets 
Current Liabilities 
243.26 M
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Current Asset is all of the company's assets that can be used to pay off current liabilities within the current fiscal period or over the next 12 months. Current Asset includes cash or cash equivalents, accounts receivable, short-term investments, and the portion of prepaid liabilities which will be paid within the next 12 months. Because these assets are easily turned into cash, they are sometimes referred to as liquid assets.
Carvana Co 
Current Asset 
 = 
Cash 
Deposits 
Liquid Assets 
511.72 M
Current Asset is important to company's creditors and private equity firms as they will often be interested in how much that company has in current assets since these assets can be easily liquidated in case the company goes bankrupt. However, it is usually not enough to know if a company is in good shape just based on current asset alone; the amount of current liabilities should always be considered.

Carvana Current Asset Comparison

Carvana Co is currently under evaluation in current asset category among related companies.

Carvana Co Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Carvana Co, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Carvana Co will eventually generate negative long term returns. The profitability progress is the general direction of Carvana Co's change in net profit over the period of time. It can combine multiple indicators of Carvana Co, 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
Consolidated Income-287 M-309.7 M
Net Income-135 M-145.7 M
Net Income Common Stock-135 M-145.7 M
Net Income to Non Controlling Interests-152 M-164 M
Operating Income-104 M-112.2 M
Preferred Dividends Income Statement Impact6.4 M5.5 M
Income Tax Expense900 K894.7 K
Net Income Per Employee-14.3 K-15.5 K
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The companys platform allows customers to research and identify a vehicle inspect it using companys 360-degree vehicle imaging technology obtain financing and warranty coverage purchase the vehicle and schedule delivery or pick-up from their desktop or mobile devices. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona.

Carvana Profitability Driver Comparison

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

Use Carvana Co 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 Carvana Co 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 Carvana Co will appreciate offsetting losses from the drop in the long position's value.

Carvana Co Pair Trading

Carvana Co Cl Pair Trading Analysis

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

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Healthcare
Healthcare Theme
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 constituents.
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Continue to Trending Equities. Note that the Carvana Co Cl information on this page should be used as a complementary analysis to other Carvana Co'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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When running Carvana Co Cl price analysis, check to measure Carvana Co'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 Carvana Co is operating at the current time. Most of Carvana Co's value examination focuses on studying past and present price action to predict the probability of Carvana Co's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Carvana Co's price. Additionally, you may evaluate how the addition of Carvana Co to your portfolios can decrease your overall portfolio volatility.
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To fully project Carvana Co's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Carvana Co Cl 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 Carvana Co's income statement, its balance sheet, and the statement of cash flows.
Potential Carvana Co investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Carvana Co investors may work on each financial statement separately, they are all related. The changes in Carvana Co's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Carvana Co'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.