JSW STEEL Return On Equity vs. Operating Margin

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:4em;padding-top: 25px;;'>JS</div>
The Drivers Module shows relationships between JSW STEEL's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of JSW STEEL LTD over time as well as its relative position and ranking within its peers. Check out Risk vs Return Analysis.

Search Current Fundamental Trends

 
Refresh

JSW STEEL LTD Operating Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining JSW STEEL's current stock value. Our valuation model uses many indicators to compare JSW STEEL value to that of its competitors to determine the firm's financial worth.
JSW STEEL LTD is currently regarded as number one stock in return on equity category among related companies. It is currently regarded as number one stock in operating margin category among related companies reporting about  0.68  of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for JSW STEEL LTD is roughly  1.46 
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
JSW STEEL 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
24.32 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
JSW STEEL 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
16.61 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

JSWSTEEL Operating Margin Comparison

JSWSTEEL Fundamental Comparison

Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page