By analyzing existing basic indicators between Salesforce and Duck Creek, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Duck Creek with a short position in Salesforce. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Salesforce has an asset utilization ratio of 207.55 percent. This denotes that the company is making $2.08 for each dollar of assets. An increasing asset utilization means that Salesforce is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Salesforce or Meridianlink is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Salesforce dividends
A dividend is the distribution of a portion of Salesforce earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Salesforce dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Salesforce one year expected dividend income is about USD0.13 per share.
As of the 24th of April 2024,
Dividends Paid is likely to grow to about 810.6
M, though
Dividend Paid And Capex Coverage Ratio is likely to grow to
(13.21).
Investing in stocks that pay
dividends, such as stock of Salesforce, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Salesforce must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Salesforce. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Salesforce's Liquidity
Salesforce
financial leverage refers to using borrowed capital as a funding source to finance Salesforce ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Salesforce financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Salesforce's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Salesforce's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Salesforce's total debt and its cash.
Correlation Between Salesforce and Meridianlink
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Salesforce together with similar or unrelated positions with a negative correlation. For example, you can also add Meridianlink to your portfolio. If Meridianlink is not perfectly correlated to Salesforce it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Salesforce, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Salesforce and Meridianlink in your portfolio? Please note if you are using this as a pair-trade strategy between Salesforce and Meridianlink, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between CRM and MLNK for more information.
A Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Salesforce revenue. Based on the latest financial disclosure, Salesforce reported 26.49
B of revenue. This is much higher than that of the Technology sector and significantly higher than that of the
Software—Application industry. The revenue for all United States stocks is 180.77% lower than that of Salesforce. As for Duck Creek we see revenue of 288.63
M, which is much higher than that of the Software—Application
| CRM | 26.49 Billion | 98.92 |
| Sector | 0.0 | 0.0 |
| DCT | 288.63 Million | 1.08 |
Will Salesforce pull back in June 2022?
Salesforce new mean deviation upsurges over 2.29.
As of the 30th of May, Salesforce has the
coefficient of variation of
(985.63), and Risk Adjusted Performance of
(0.13). Salesforce
technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen
technical drivers for Salesforce, which can be compared to its competition. Please validate
Salesforce downside deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
downside variance to decide if Salesforce is priced more or less accurately, providing market reflects its prevalent price of 165.1 per share. Given that Salesforce has
jensen alpha of
(0.29), we advise you to double-check Salesforce's current market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Salesforce Investment
While some firms in the software—application industry are either recovering or due for a correction, Salesforce may not be performing as strong as the other in terms of long-term growth potentials. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Salesforce.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Salesforce. Please refer to our
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