Whirlpool Return On Asset vs. Current Ratio
| WHR Stock | USD 105.44 0.77 0.74% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.23 | 0.1609 |
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| Operating Profit Margin | 0.0658 | 0.0584 |
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For Whirlpool profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Whirlpool to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Whirlpool utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Whirlpool's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Whirlpool over time as well as its relative position and ranking within its peers.
Whirlpool |
Is Whirlpool'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 Whirlpool. If investors know Whirlpool 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 Whirlpool 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 (0.42) | Dividend Share 7 | Earnings Share 8.72 | Revenue Per Share 353.727 | Quarterly Revenue Growth 0.034 |
The market value of Whirlpool is measured differently than its book value, which is the value of Whirlpool that is recorded on the company's balance sheet. Investors also form their own opinion of Whirlpool's value that differs from its market value or its book value, called intrinsic value, which is Whirlpool'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 Whirlpool's market value can be influenced by many factors that don't directly affect Whirlpool'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 Whirlpool's value and its price as these two are different measures arrived at by different means. Investors typically determine if Whirlpool is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Whirlpool'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.
Whirlpool Current Ratio vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Whirlpool's current stock value. Our valuation model uses many indicators to compare Whirlpool value to that of its competitors to determine the firm's financial worth. Whirlpool is rated third in return on asset category among related companies. It is rated below average in current ratio category among related companies fabricating about 27.82 of Current Ratio per Return On Asset. At this time, Whirlpool's Current Ratio is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Whirlpool by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Whirlpool'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 Whirlpool's earnings, one of the primary drivers of an investment's value.Whirlpool Current Ratio vs. Return On Asset
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.
Whirlpool |
| = | 0.0417 |
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.
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.
Whirlpool |
| = | 1.16 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).
Whirlpool Current Ratio Comparison
Whirlpool is currently under evaluation in current ratio category among related companies.
Whirlpool Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Whirlpool, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Whirlpool will eventually generate negative long term returns. The profitability progress is the general direction of Whirlpool's change in net profit over the period of time. It can combine multiple indicators of Whirlpool, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.2 B | -2.3 B | |
| Operating Income | 1.1 B | 876.3 M | |
| Income Before Tax | 593 M | 569.4 M | |
| Total Other Income Expense Net | -544 M | -516.8 M | |
| Net Income | 488 M | 418.7 M | |
| Income Tax Expense | 77 M | 73.2 M | |
| Net Loss | -1.7 B | -1.7 B | |
| Net Loss | -1.6 B | -1.5 B | |
| Non Operating Income Net Other | -9.2 M | -9.7 M | |
| Interest Income | 153.9 M | 134.1 M | |
| Net Interest Income | -426 M | -404.7 M | |
| Change To Netincome | 2.6 B | 2.7 B | |
| Net Income Per Share | 8.75 | 9.18 | |
| Income Quality | 1.88 | 2.10 | |
| Net Income Per E B T | 0.81 | 0.85 |
Whirlpool Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Whirlpool. 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 Whirlpool 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 Whirlpool's important profitability drivers and their relationship over time.
Use Whirlpool 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 Whirlpool 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 Whirlpool will appreciate offsetting losses from the drop in the long position's value.Whirlpool Pair Trading
Whirlpool Pair Trading Analysis
The ability to find closely correlated positions to Whirlpool could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Whirlpool 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 Whirlpool - 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 Whirlpool to buy it.
The correlation of Whirlpool 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 Whirlpool moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Whirlpool 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 Whirlpool 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 Whirlpool position
In addition to having Whirlpool 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 Petroleum and Natural Gas Thematic Idea Now
Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 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 Petroleum and Natural Gas Theme or any other thematic opportunities.
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Check out Your Current Watchlist. To learn how to invest in Whirlpool Stock, please use our How to Invest in Whirlpool guide.Note that the Whirlpool information on this page should be used as a complementary analysis to other Whirlpool'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 the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Whirlpool Stock analysis
When running Whirlpool's price analysis, check to measure Whirlpool'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 Whirlpool is operating at the current time. Most of Whirlpool's value examination focuses on studying past and present price action to predict the probability of Whirlpool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Whirlpool's price. Additionally, you may evaluate how the addition of Whirlpool to your portfolios can decrease your overall portfolio volatility.
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To fully project Whirlpool's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Whirlpool 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 Whirlpool's income statement, its balance sheet, and the statement of cash flows.