ETRADE Financial Short Ratio vs. Current Ratio
Taking into consideration ETRADE Financial's profitability measurements, ETRADE Financial LLC may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess ETRADE Financial's ability to earn profits and add value for shareholders.
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.
Please note, there is a significant difference between ETRADE Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if ETRADE Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ETRADE Financial'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.
For ETRADE Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ETRADE Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ETRADE Financial LLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ETRADE Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ETRADE Financial LLC over time as well as its relative position and ranking within its peers.
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ETRADE Financial LLC Current Ratio vs. Short Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ETRADE Financial's current stock value. Our valuation model uses many indicators to compare ETRADE Financial value to that of its competitors to determine the firm's financial worth. ETRADE Financial LLC is one of the top stocks in short ratio category among related companies. It is one of the top stocks in current ratio category among related companies fabricating about 0.18 of Current Ratio per Short Ratio. The ratio of Short Ratio to Current Ratio for ETRADE Financial LLC is roughly 5.59 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ETRADE Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ETRADE Financial'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 ETRADE Financial's earnings, one of the primary drivers of an investment's value.ETRADE Current Ratio vs. Short Ratio
Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
ETRADE Financial |
| = | 6.04 X |
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.
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.
ETRADE Financial |
| = | 1.08 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).
ETRADE Current Ratio Comparison
ETRADE Financial is currently under evaluation in current ratio category among related companies.
ETRADE Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ETRADE Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ETRADE Financial will eventually generate negative long term returns. The profitability progress is the general direction of ETRADE Financial's change in net profit over the period of time. It can combine multiple indicators of ETRADE Financial, 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.
ETRADE Financial Corporation, a financial services company, provides brokerage, and related products and services for traders, investors, registered investment advisors , and stock plan administrators and participants. As of October 1, 2020, ETRADE Financial, LLC operates as a subsidiary of Morgan Stanley. ETRADE Financial operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 4178 people.
ETRADE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ETRADE Financial. 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 ETRADE Financial 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 ETRADE Financial's important profitability drivers and their relationship over time.
Use ETRADE Financial 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 ETRADE Financial 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 ETRADE Financial will appreciate offsetting losses from the drop in the long position's value.ETRADE Financial Pair Trading
ETRADE Financial LLC Pair Trading Analysis
The ability to find closely correlated positions to Halliburton could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Halliburton 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 Halliburton - 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 Halliburton to buy it.
The correlation of Halliburton 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 Halliburton moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Halliburton 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 Halliburton 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 ETRADE Financial position
In addition to having ETRADE Financial 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 Services Thematic Idea Now
Services
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 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 Services Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the ETRADE Financial LLC information on this page should be used as a complementary analysis to other ETRADE Financial'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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Consideration for investing in ETRADE Stock
If you are still planning to invest in ETRADE Financial LLC check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the ETRADE Financial's history and understand the potential risks before investing.
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