Asbury Gross Profit vs Net Income Analysis

ABG Stock  USD 233.73  8.19  3.63%   
Asbury Automotive financial indicator trend analysis is way more than just evaluating Asbury Automotive prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Asbury Automotive is a good investment. Please check the relationship between Asbury Automotive Gross Profit and its Net Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Asbury Automotive Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Gross Profit vs Net Income

Gross Profit vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Asbury Automotive Gross Profit account and Net Income. At this time, the significance of the direction appears to have almost identical trend.
The correlation between Asbury Automotive's Gross Profit and Net Income is 0.96. Overlapping area represents the amount of variation of Gross Profit that can explain the historical movement of Net Income in the same time period over historical financial statements of Asbury Automotive Group, assuming nothing else is changed. The correlation between historical values of Asbury Automotive's Gross Profit and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Gross Profit of Asbury Automotive Group are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Gross Profit i.e., Asbury Automotive's Gross Profit and Net Income go up and down completely randomly.

Correlation Coefficient

0.96
Relationship DirectionPositive 
Relationship StrengthVery Strong

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Asbury Automotive Group minus its cost of goods sold. It is profit before Asbury Automotive operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Asbury Automotive financial statement analysis. It represents the amount of money remaining after all of Asbury Automotive Group operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
Most indicators from Asbury Automotive's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Asbury Automotive current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Asbury Automotive Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
At this time, Asbury Automotive's Selling General Administrative is most likely to increase significantly in the upcoming years. The Asbury Automotive's current Enterprise Value Multiple is estimated to increase to 12.40, while Discontinued Operations is projected to decrease to (241.5 K).
 2021 2022 2023 2024 (projected)
Gross Profit1.9B3.1B2.7B2.8B
Total Revenue9.8B15.4B14.8B15.5B

Asbury Automotive fundamental ratios Correlations

0.99-0.33-0.510.780.220.990.940.960.870.990.070.620.970.960.570.790.970.990.990.990.990.970.99-0.710.6
0.99-0.27-0.430.760.30.960.90.950.820.990.10.640.950.950.540.790.990.970.950.970.950.960.99-0.650.63
-0.33-0.270.54-0.350.18-0.38-0.47-0.28-0.3-0.240.9-0.07-0.33-0.2-0.22-0.18-0.14-0.43-0.35-0.4-0.35-0.33-0.270.42-0.03
-0.51-0.430.54-0.490.66-0.58-0.6-0.38-0.5-0.410.26-0.24-0.53-0.44-0.39-0.2-0.36-0.58-0.58-0.58-0.59-0.65-0.470.81-0.22
0.780.76-0.35-0.49-0.070.740.930.80.950.74-0.120.050.630.60.350.890.720.770.770.760.80.810.72-0.840.03
0.220.30.180.66-0.070.160.030.320.030.320.20.370.230.30.090.280.350.160.130.160.120.020.270.440.37
0.990.96-0.38-0.580.740.160.920.930.840.970.040.650.990.970.610.720.940.991.01.00.990.960.99-0.720.64
0.940.9-0.47-0.60.930.030.920.910.960.89-0.120.350.850.820.540.850.860.940.940.940.950.930.89-0.840.33
0.960.95-0.28-0.380.80.320.930.910.890.950.080.480.890.910.470.90.950.930.940.940.940.910.95-0.660.47
0.870.82-0.3-0.50.950.030.840.960.890.820.010.160.750.750.470.920.80.850.880.850.90.850.82-0.810.15
0.990.99-0.24-0.410.740.320.970.890.950.820.140.680.960.960.540.780.990.970.960.970.950.950.99-0.640.67
0.070.10.90.26-0.120.20.04-0.120.080.010.140.260.10.230.050.040.23-0.040.070.00.050.050.130.130.3
0.620.64-0.07-0.240.050.370.650.350.480.160.680.260.770.750.470.090.660.630.590.630.560.580.68-0.131.0
0.970.95-0.33-0.530.630.230.990.850.890.750.960.10.770.980.60.630.940.980.970.970.960.930.98-0.630.75
0.960.95-0.2-0.440.60.30.970.820.910.750.960.230.750.980.60.660.960.950.960.960.950.910.98-0.570.74
0.570.54-0.22-0.390.350.090.610.540.470.470.540.050.470.60.60.280.520.590.60.590.590.540.57-0.260.46
0.790.79-0.18-0.20.890.280.720.850.90.920.780.040.090.630.660.280.790.740.750.740.770.740.75-0.640.08
0.970.99-0.14-0.360.720.350.940.860.950.80.990.230.660.940.960.520.790.940.940.950.930.930.98-0.60.66
0.990.97-0.43-0.580.770.160.990.940.930.850.97-0.040.630.980.950.590.740.940.991.00.980.970.98-0.730.61
0.990.95-0.35-0.580.770.131.00.940.940.880.960.070.590.970.960.60.750.940.990.991.00.960.98-0.750.58
0.990.97-0.4-0.580.760.161.00.940.940.850.970.00.630.970.960.590.740.951.00.990.990.970.99-0.730.61
0.990.95-0.35-0.590.80.120.990.950.940.90.950.050.560.960.950.590.770.930.981.00.990.960.97-0.760.54
0.970.96-0.33-0.650.810.020.960.930.910.850.950.050.580.930.910.540.740.930.970.960.970.960.96-0.810.56
0.990.99-0.27-0.470.720.270.990.890.950.820.990.130.680.980.980.570.750.980.980.980.990.970.96-0.650.67
-0.71-0.650.420.81-0.840.44-0.72-0.84-0.66-0.81-0.640.13-0.13-0.63-0.57-0.26-0.64-0.6-0.73-0.75-0.73-0.76-0.81-0.65-0.11
0.60.63-0.03-0.220.030.370.640.330.470.150.670.31.00.750.740.460.080.660.610.580.610.540.560.67-0.11
Click cells to compare fundamentals

Asbury Automotive Account Relationship Matchups

Asbury Automotive fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets2.9B3.7B8.0B8.0B10.2B10.7B
Total Stockholder Equity646.3M905.5M2.1B2.9B3.2B3.4B
Common Stock Shares Outstanding21M20.3M19.3M20.1M22.4M23.1M
Liabilities And Stockholders Equity2.9B3.7B8.0B8.0B10.2B10.7B
Inventory985M875.2M718.4M959.2M1.8B1.9B
Other Stockholder Equity(445.7M)(438.2M)234.5M218.4M221.1M130.7M
Total Liab2.3B2.8B5.9B5.1B6.1B6.4B
Total Current Assets1.6B1.4B2.1B1.9B3.1B3.2B
Other Current Liab100.9M220.8M417.3M376.4M661.5M694.6M
Total Current Liabilities1.2B1.2B1.6B1.0B2.9B3.0B
Other Liab55.5M74.1M524.4M649.3M746.7M784.0M
Accounts Payable81.7M97.6M163.9M147.4M155.6M163.4M
Cash3.5M1.4M189.4M235.3M45.7M56.0M
Long Term Debt907M1.2B3.5B3.2B3.1B3.3B
Good Will201.7M562.2M2.3B1.8B2.0B2.1B
Short Term Investments600K11M1.1M5.4M6.2M6.5M
Other Current Assets90.4M141.8M157.7M181.7M1.2B1.2B
Intangible Assets121.7M425.2M1.3B1.8B2.1B2.2B
Property Plant Equipment909.7M956.2M2.0B1.9B2.2B2.3B
Short Long Term Debt Total1.9B2.4B4.6B3.7B5.0B5.2B
Property Plant And Equipment Net975.3M1.3B2.3B2.2B2.6B2.7B
Net Debt1.9B2.4B4.4B3.5B4.9B5.2B
Retained Earnings1.1B1.3B1.9B2.6B3.0B3.1B
Non Current Assets Total1.3B2.3B6.1B6.1B7.1B7.5B
Cash And Short Term Investments3.5M1.4M189.4M240.7M45.7M56.8M
Net Receivables348M337.4M469.5M446.2M564.7M298.6M
Non Current Liabilities Total1.0B1.5B4.3B4.1B3.2B3.4B
Property Plant And Equipment Gross975.3M1.3B2.6B1.9B3.0B3.1B
Accumulated Other Comprehensive Income(2.9M)(5.6M)(700K)74.4M61.1M64.2M
Short Term Debt921.3M896.3M799.1M253.6M1.8B1.9B
Treasury Stock(1.0B)(1.0B)(1.0B)(1.1B)(956.7M)(908.9M)
Current Deferred Revenue143.1M8.7M217.7M256M272.9M286.5M
Net Tangible Assets375.5M214.8M306.6M3.6B4.2B4.4B
Retained Earnings Total Equity1.1B1.3B1.9B2.6B3.0B3.2B
Long Term Debt Total907M1.2B3.5B3.2B3.7B3.9B

Pair Trading with Asbury Automotive

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 Asbury Automotive 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 Asbury Automotive will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Asbury Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Asbury Automotive 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 Asbury Automotive - 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 Asbury Automotive Group to buy it.
The correlation of Asbury Automotive 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 Asbury Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Asbury Automotive 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 Asbury Automotive 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.
Pair CorrelationCorrelation Matching
When determining whether Asbury Automotive is a strong investment it is important to analyze Asbury Automotive's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Asbury Automotive's future performance. For an informed investment choice regarding Asbury Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Asbury Automotive Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the Asbury Automotive information on this page should be used as a complementary analysis to other Asbury Automotive'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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When running Asbury Automotive's price analysis, check to measure Asbury Automotive'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 Asbury Automotive is operating at the current time. Most of Asbury Automotive's value examination focuses on studying past and present price action to predict the probability of Asbury Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Asbury Automotive's price. Additionally, you may evaluate how the addition of Asbury Automotive to your portfolios can decrease your overall portfolio volatility.
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Is Asbury Automotive'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 Asbury Automotive. If investors know Asbury 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 Asbury Automotive 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
(0.83)
Earnings Share
28.73
Revenue Per Share
708.263
Quarterly Revenue Growth
0.029
Return On Assets
0.0739
The market value of Asbury Automotive is measured differently than its book value, which is the value of Asbury that is recorded on the company's balance sheet. Investors also form their own opinion of Asbury Automotive's value that differs from its market value or its book value, called intrinsic value, which is Asbury Automotive'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 Asbury Automotive's market value can be influenced by many factors that don't directly affect Asbury Automotive'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 Asbury Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Asbury Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Asbury Automotive'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.