GlaxoSmithKline PLC Price to Book vs. Current Ratio
GSK Stock | USD 40.86 0.38 0.92% |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.78 | 0.7007 |
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Net Profit Margin | 0.22 | 0.1625 |
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Operating Profit Margin | 0.32 | 0.2306 |
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Pretax Profit Margin | 0.31 | 0.2001 |
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Return On Assets | 0.15 | 0.0835 |
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For GlaxoSmithKline PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GlaxoSmithKline PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GlaxoSmithKline PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GlaxoSmithKline PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GlaxoSmithKline PLC ADR over time as well as its relative position and ranking within its peers.
GlaxoSmithKline |
Is GlaxoSmithKline PLC'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 GlaxoSmithKline PLC. If investors know GlaxoSmithKline 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 GlaxoSmithKline PLC 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 (0.77) | Dividend Share 0.58 | Earnings Share 2.97 | Revenue Per Share 14.97 | Quarterly Revenue Growth 0.092 |
The market value of GlaxoSmithKline PLC ADR is measured differently than its book value, which is the value of GlaxoSmithKline that is recorded on the company's balance sheet. Investors also form their own opinion of GlaxoSmithKline PLC's value that differs from its market value or its book value, called intrinsic value, which is GlaxoSmithKline PLC'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 GlaxoSmithKline PLC's market value can be influenced by many factors that don't directly affect GlaxoSmithKline PLC'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 GlaxoSmithKline PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if GlaxoSmithKline PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GlaxoSmithKline PLC'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.
GlaxoSmithKline PLC ADR Current Ratio vs. Price to Book Fundamental Analysis
GlaxoSmithKline Current Ratio vs. Price to Book
GlaxoSmithKline PLC | = | null |
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
GlaxoSmithKline PLC |
| = | 1.43 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
GlaxoSmithKline Current Ratio Comparison
GlaxoSmithKline PLC is currently under evaluation in current ratio category among related companies.
Use GlaxoSmithKline PLC 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 GlaxoSmithKline PLC 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 GlaxoSmithKline PLC will appreciate offsetting losses from the drop in the long position's value.GlaxoSmithKline PLC Pair Trading
GlaxoSmithKline PLC ADR Pair Trading Analysis
The ability to find closely correlated positions to GlaxoSmithKline PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GlaxoSmithKline PLC 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 GlaxoSmithKline PLC - 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 GlaxoSmithKline PLC ADR to buy it.
The correlation of GlaxoSmithKline PLC 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 GlaxoSmithKline PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GlaxoSmithKline PLC ADR 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 GlaxoSmithKline PLC 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.Use Investing Themes to Complement your GlaxoSmithKline PLC position
In addition to having GlaxoSmithKline PLC 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?
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Check out Risk vs Return Analysis. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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When running GlaxoSmithKline PLC's price analysis, check to measure GlaxoSmithKline PLC'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 GlaxoSmithKline PLC is operating at the current time. Most of GlaxoSmithKline PLC's value examination focuses on studying past and present price action to predict the probability of GlaxoSmithKline PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GlaxoSmithKline PLC's price. Additionally, you may evaluate how the addition of GlaxoSmithKline PLC to your portfolios can decrease your overall portfolio volatility.
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To fully project GlaxoSmithKline PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GlaxoSmithKline PLC ADR 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 GlaxoSmithKline PLC's income statement, its balance sheet, and the statement of cash flows.