ScanSource Return On Equity vs. Total Asset
| SCSC Stock | USD 44.45 2.97 7.16% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.11 | Current Value 0.12 | Quarterly Volatility 0.05753115 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.13 | 0.14 |
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For ScanSource profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ScanSource to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ScanSource utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ScanSource's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ScanSource over time as well as its relative position and ranking within its peers.
ScanSource |
Is ScanSource'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 ScanSource. If investors know ScanSource 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 ScanSource 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 0.277 | Earnings Share 3.42 | Revenue Per Share 143.748 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0364 |
The market value of ScanSource is measured differently than its book value, which is the value of ScanSource that is recorded on the company's balance sheet. Investors also form their own opinion of ScanSource's value that differs from its market value or its book value, called intrinsic value, which is ScanSource'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 ScanSource's market value can be influenced by many factors that don't directly affect ScanSource'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 ScanSource's value and its price as these two are different measures arrived at by different means. Investors typically determine if ScanSource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ScanSource'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.
ScanSource Total Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ScanSource's current stock value. Our valuation model uses many indicators to compare ScanSource value to that of its competitors to determine the firm's financial worth. ScanSource is rated below average in return on equity category among related companies. It is rated fifth in total asset category among related companies fabricating about 21,724,464,286 of Total Asset per Return On Equity. At present, ScanSource's Return On Equity is projected to increase slightly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value ScanSource by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ScanSource'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 ScanSource's earnings, one of the primary drivers of an investment's value.ScanSource Total Asset vs. Return On Equity
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.
ScanSource |
| = | 0.0952 |
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.
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
ScanSource |
| = | 2.07 B |
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.
ScanSource Total Asset Comparison
ScanSource is currently under evaluation in total asset category among related companies.
ScanSource Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ScanSource, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ScanSource will eventually generate negative long term returns. The profitability progress is the general direction of ScanSource's change in net profit over the period of time. It can combine multiple indicators of ScanSource, 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 | -80.7 M | -76.6 M | |
| Operating Income | 156.3 M | 164.1 M | |
| Net Income | 101.3 M | 106.4 M | |
| Income Before Tax | 140.1 M | 147.1 M | |
| Total Other Income Expense Net | -1.5 M | -1.6 M | |
| Income Tax Expense | 38.8 M | 22 M | |
| Net Income Applicable To Common Shares | 103.3 M | 108.4 M | |
| Net Income From Continuing Ops | 79.3 M | 42.8 M | |
| Non Operating Income Net Other | 6.6 M | 3.7 M | |
| Interest Income | 8.5 M | 4.3 M | |
| Net Interest Income | -11.1 M | -10.6 M | |
| Change To Netincome | 14.4 M | 13.7 M | |
| Net Income Per Share | 3.21 | 3.38 | |
| Income Quality | (0.37) | (0.35) | |
| Net Income Per E B T | 0.66 | 0.54 |
ScanSource Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ScanSource. 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 ScanSource 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 ScanSource's important profitability drivers and their relationship over time.
Use ScanSource 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 ScanSource 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 ScanSource will appreciate offsetting losses from the drop in the long position's value.ScanSource Pair Trading
ScanSource Pair Trading Analysis
The ability to find closely correlated positions to ScanSource could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ScanSource 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 ScanSource - 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 ScanSource to buy it.
The correlation of ScanSource 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 ScanSource moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ScanSource 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 ScanSource 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 ScanSource position
In addition to having ScanSource 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 Currency Funds Thematic Idea Now
Currency Funds
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 48 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 Currency Funds Theme or any other thematic opportunities.
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Check out World Market Map. For information on how to trade ScanSource Stock refer to our How to Trade ScanSource Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for ScanSource Stock analysis
When running ScanSource's price analysis, check to measure ScanSource'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 ScanSource is operating at the current time. Most of ScanSource's value examination focuses on studying past and present price action to predict the probability of ScanSource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ScanSource's price. Additionally, you may evaluate how the addition of ScanSource to your portfolios can decrease your overall portfolio volatility.
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To fully project ScanSource's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ScanSource 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 ScanSource's income statement, its balance sheet, and the statement of cash flows.