Carvana Net Income vs Operating Income Analysis

CVNA Stock  USD 87.91  2.40  2.66%   
Carvana financial indicator trend analysis is way more than just evaluating Carvana prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Carvana is a good investment. Please check the relationship between Carvana Net Income and its Operating Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Carvana Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.

Net Income vs Operating Income

Net Income vs Operating Income Correlation Analysis

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

Correlation Coefficient

0.96
Relationship DirectionPositive 
Relationship StrengthVery Strong

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Carvana financial statement analysis. It represents the amount of money remaining after all of Carvana Co operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Operating Income

Operating Income is the amount of profit realized from Carvana operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Carvana Co is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.
Most indicators from Carvana's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Carvana 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 Carvana Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
At present, Carvana's Tax Provision is projected to increase significantly based on the last few years of reporting. The current year's Issuance Of Capital Stock is expected to grow to about 588.3 M, whereas Selling General Administrative is forecasted to decline to about 812.9 M.
 2021 2022 2023 2024 (projected)
Interest Expense176M486M632M663.6M
Depreciation And Amortization105M261M352M369.6M

Carvana fundamental ratios Correlations

0.9-0.04-0.560.770.950.990.860.840.850.990.850.930.85-0.550.940.990.93-0.150.970.99-0.910.970.86-0.710.98
0.9-0.13-0.320.760.770.830.590.960.960.880.990.980.99-0.50.720.880.92-0.140.790.88-0.710.790.6-0.650.87
-0.04-0.130.44-0.080.170.030.220.1-0.13-0.12-0.13-0.05-0.13-0.08-0.01-0.13-0.13-0.18-0.09-0.150.27-0.090.24-0.20.12
-0.56-0.320.44-0.42-0.53-0.63-0.66-0.08-0.17-0.64-0.27-0.32-0.270.08-0.74-0.65-0.41-0.3-0.71-0.650.82-0.71-0.640.18-0.5
0.770.76-0.08-0.420.690.730.660.670.660.770.710.770.71-0.650.720.760.67-0.330.750.77-0.690.740.6-0.820.76
0.950.770.17-0.530.690.970.920.740.710.930.710.840.71-0.560.950.930.85-0.20.950.92-0.870.950.95-0.750.95
0.990.830.03-0.630.730.970.930.760.750.980.770.870.77-0.530.980.980.88-0.130.990.98-0.920.990.93-0.680.98
0.860.590.22-0.660.660.920.930.540.480.860.520.660.52-0.490.960.860.68-0.130.920.85-0.860.920.99-0.610.9
0.840.960.1-0.080.670.740.760.540.960.790.950.960.95-0.510.620.790.88-0.220.690.79-0.560.690.55-0.670.84
0.850.96-0.13-0.170.660.710.750.480.960.820.950.950.95-0.490.630.810.9-0.190.710.82-0.630.710.49-0.620.8
0.990.88-0.12-0.640.770.930.980.860.790.820.830.910.83-0.520.961.00.92-0.110.981.0-0.940.980.86-0.670.96
0.850.99-0.13-0.270.710.710.770.520.950.950.830.951.0-0.450.650.830.87-0.120.720.83-0.640.720.53-0.610.83
0.930.98-0.05-0.320.770.840.870.660.960.950.910.950.95-0.540.770.90.96-0.180.830.9-0.750.830.67-0.710.9
0.850.99-0.13-0.270.710.710.770.520.950.950.831.00.95-0.460.650.830.87-0.120.720.83-0.640.720.53-0.610.83
-0.55-0.5-0.080.08-0.65-0.56-0.53-0.49-0.51-0.49-0.52-0.45-0.54-0.46-0.5-0.52-0.50.73-0.52-0.510.41-0.52-0.490.79-0.57
0.940.72-0.01-0.740.720.950.980.960.620.630.960.650.770.65-0.50.960.8-0.090.990.95-0.960.990.96-0.630.93
0.990.88-0.13-0.650.760.930.980.860.790.811.00.830.90.83-0.520.960.91-0.10.981.0-0.950.980.86-0.660.96
0.930.92-0.13-0.410.670.850.880.680.880.90.920.870.960.87-0.50.80.91-0.120.860.91-0.820.860.7-0.630.88
-0.15-0.14-0.18-0.3-0.33-0.2-0.13-0.13-0.22-0.19-0.11-0.12-0.18-0.120.73-0.09-0.1-0.12-0.1-0.1-0.03-0.1-0.140.55-0.19
0.970.79-0.09-0.710.750.950.990.920.690.710.980.720.830.72-0.520.990.980.86-0.10.98-0.971.00.92-0.660.94
0.990.88-0.15-0.650.770.920.980.850.790.821.00.830.90.83-0.510.951.00.91-0.10.98-0.950.980.85-0.650.95
-0.91-0.710.270.82-0.69-0.87-0.92-0.86-0.56-0.63-0.94-0.64-0.75-0.640.41-0.96-0.95-0.82-0.03-0.97-0.95-0.97-0.850.54-0.84
0.970.79-0.09-0.710.740.950.990.920.690.710.980.720.830.72-0.520.990.980.86-0.11.00.98-0.970.92-0.650.94
0.860.60.24-0.640.60.950.930.990.550.490.860.530.670.53-0.490.960.860.7-0.140.920.85-0.850.92-0.620.89
-0.71-0.65-0.20.18-0.82-0.75-0.68-0.61-0.67-0.62-0.67-0.61-0.71-0.610.79-0.63-0.66-0.630.55-0.66-0.650.54-0.65-0.62-0.73
0.980.870.12-0.50.760.950.980.90.840.80.960.830.90.83-0.570.930.960.88-0.190.940.95-0.840.940.89-0.73
Click cells to compare fundamentals

Carvana Account Relationship Matchups

Carvana fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets2.1B3.0B7.0B8.7B7.1B7.4B
Total Current Liabilities864.9M467.1M2.9B2.6B1.5B1.0B
Total Stockholder Equity98.1M387.6M306M(518M)243M255.2M
Net Tangible Assets81.5M372.6M293M(588M)(529.2M)(502.7M)
Accounts Payable234.4M66.5M141M216M224M116.4M
Cash76.0M300.8M403M434M530M556.5M
Net Receivables39.9M85.0M206M253M266M279.3M
Common Stock Shares Outstanding46.8M65.0M82.8M100.8M200.6M210.6M
Inventory762.7M1.0B3.1B1.9B1.2B978.3M
Other Current Assets151.4M197.9M545M503M138M174.4M
Total Liab1.9B2.2B6.5B9.8B7.5B7.8B
Short Long Term Debt617.6M105.3M2.2B1.7B857M682.9M
Total Current Assets1.4B1.9B4.9B4.6B3.3B1.9B
Short Term Debt617.6M108.8M2.2B1.7B857M683.3M
Common Stock133K145K152K173K155.7K147.9K
Property Plant Equipment666.9M1.1B1.9B3.8B4.3B4.6B
Short Long Term Debt Total1.6B1.9B5.8B8.8B6.7B7.0B
Other Current Liab6.5M275.0M510M618M425M246.9M
Other Liab1.8M1.4M31M78M70.2M44.7M
Property Plant And Equipment Net666.9M1.1B1.9B3.8B3.4B3.6B
Net Debt1.5B1.6B5.4B8.4B6.2B6.5B
Retained Earnings(183.0M)(354.2M)(489M)(2.1B)(1.6B)(1.5B)
Non Current Assets Total698.3M1.1B2.1B4.1B3.8B3.9B
Cash And Short Term Investments76.0M300.8M403M434M896M940.8M
Common Stock Total Equity133K145K152K173K155.7K147.9K
Liabilities And Stockholders Equity2.1B3.0B7.0B8.7B7.1B3.7B
Non Current Liabilities Total1.0B1.8B3.6B7.2B5.9B6.2B
Other Stockholder Equity281.0M741.6M795M1.6B1.9B2.0B
Property Plant And Equipment Gross666.9M1.1B1.9B3.8B4.2B4.4B
Non Currrent Assets Other14.9M31.8M181M254M261M274.1M
Long Term Debt883.1M1.6B3.2B6.6B5.4B5.7B
Long Term Debt Total883.1M1.6B3.2B6.6B7.6B7.9B
Non Current Liabilities Other1.8M148.9M392M78M70M97.1M
Current Deferred Revenue6.4M16.9M34M23M30M31.5M
Noncontrolling Interest In Consolidated Entity93.8M413.9M219M(535M)(481.5M)(457.4M)
Other Assets14.9M187.2M181M254M292.1M306.7M

Pair Trading with Carvana

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 Carvana 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 Carvana will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to Carvana could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Carvana 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 Carvana - 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 Carvana Co to buy it.
The correlation of Carvana 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 Carvana moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Carvana 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 Carvana 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 Carvana offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Carvana's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Carvana Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Carvana Co Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Carvana Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for Carvana Stock analysis

When running Carvana's price analysis, check to measure Carvana'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 Carvana is operating at the current time. Most of Carvana's value examination focuses on studying past and present price action to predict the probability of Carvana's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Carvana's price. Additionally, you may evaluate how the addition of Carvana to your portfolios can decrease your overall portfolio volatility.
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Is Carvana'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 Carvana. If investors know Carvana 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 Carvana listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(4.18)
Revenue Per Share
98.525
Quarterly Revenue Growth
(0.15)
Return On Assets
(0.01)
Return On Equity
(12.69)
The market value of Carvana is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana's value that differs from its market value or its book value, called intrinsic value, which is Carvana'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 Carvana's market value can be influenced by many factors that don't directly affect Carvana'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 Carvana's value and its price as these two are different measures arrived at by different means. Investors typically determine if Carvana is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana'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.